What Happens if You Forget to Put Title to an Asset into Your Revocable Living Trust?
Posted by Phil Craig
What Happens if You Forget to Put Title to an Asset into Your Revocable Living Trust?
Are there ways to avoid probate? What is a pour-over will and can it help? How about a "General Assignment of Assets?"
Previously, we discussed the problems that arise if
you fail to place title to your assets into the name
of your revocable living trust. In one article, I shared the problem of the widow.
She learned that her husband had assets that were in
his name alone and not put into the title of their
revocable living trust. An attorney was now quoting her a fee of thousands of
dollars to clean up the revocable living trust and
try to avoid probate. In my Multi-Media course I describe what you can do if
you find that an asset is left out of your trust. About 13 years ago, the California Court of Appeals
decided a case where a man had died without placing title
to his assets into his revocable living trust. The appeals
court decided that even though the man had failed to
actually place title into his revocable living trust, the
man had demonstrated enough of an intent that his assets
be held in the revocable living trust. Therefore, the
court held that the revocable living trust held legal
title. The court then instructed the lower court to issue
an order converting the assets into the title of the
revocable living trust. This case is now used in California to help avoid probate
if assets are found to not be in the name of the revocable
living trust. The key is that there has to be a
demonstration of intent that the assets be held in the
name of the revocable living trust. In my practice I used to prepare a document called
"General Assignment of Assets to Revocable Living Trust."
In it, I would declare the intent of the parties to have
their assets held in the title of the revocable living trust.
It then went on to say that if there was an asset that was
left out, it was to be placed into the revocable living
trust on request by the trustee. This gave the trustee
the elements needed under the court of appeals case to
avoid probate. You should ask your estate planning professional if a
"General Assignment of Assets" to your revocable living
trust is appropriate for you. Good luck and until next time, Phil Craig P.S. Feel free to forward this on to any friends. Phil Craig is a licensed attorney and entreprenuer.
He started practicing law at age 25 in 1979.
He does not take on any more clients, but is
advisor to some of the biggest names in the internet
world. He shares his knowledge gained over the
last 25 years at his Living Trust Secrets newsletter site:
click here=========>http://www.LivingTrustSecrets.com ** Attn Ezine editors / Site owners **
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