Officiallythick

What About Personal Property?

Posted on 09 Jun 2011 by admin | Filled under: intellectual-property

When funding a trust, the family home is a common asset transferred to the trust. But what about personal property? Can you fund your trust with things like jewelry and antiques?

The short answer is yes, you can, but there are some special concerns that exist when using personal property to fund a trust.

The first thing you need to know is that personal property falls into two categories: property that has a legal certificate of title, and property that doesn't.

Cars and boats are good examples of personal property with a legal certificate of title, but before funding your trust with this type of property, you should consult with your attorney.

Because you'll be transferring title to the trust, any accidents involving these items could make the trust liable for the damage or injury.

If you do decide to place these items in your trust, be sure your liability insurance carrier knows about the change in ownership, so it can be reflected on your policy.

What about all the rest of your personal property? Things like clothes, household items, jewelry and antiques don't come with a certificate of title and the reality is, most of us own too much to list out every single item.

In addition, we continue to acquire and dispose of countless personal items during our lifetime.

Fortunately, there's an easy way to do this.

To fund property that does not carry a legal certificate of title, you'll need a document known as an Assignment of Tangible Personal Property. This is a blanket document that states that all of your property that doesn't have a legal certificate of title is officially transferred into your trust. The Assignment can simply state that all of the personal property you own at the time you sign the Assignment goes into the trust.

Additionally, it can specify that all personal property you acquire after signing the Assignment also goes into the trust. No matter what kind of property you own, properly funding your trust is an essential step in avoiding probate.