Three Tips For Your Trust

If you already have a trust in place, then there are three things (among others) that you should check on — but please note that if you have an attorney or you are not in California, please check with your attorney.

1) If your house is in your trust, make sure your trust is “an insured” party in your homeowners insurance. In the recent Los Angeles fires, insurance companies have decided to use this as a reason to dispute claims. For various reasons, this doesn’t make sense — but it’s something you should be sure to check with your insurance company about, especially now.

2) Is your house in the name of the trust? Many times people assume it is because they signed the paperwork when they set up the trust. However, if you refinanced, you need to be sure the house is in the trust. It’s common for the house to be pulled out of the trust to refinance — but it HAS to go back in. (If it has been pulled out and it’s now owned as Joint Tenants, you may also need to convert ownership to Community Property before putting it back into the trust; it’s just another deed, but it may save your spouse money down the line.)

3) Check to make sure ALL your bank accounts (checking, savings, money market, brokerage accounts) are in the name of the trust. You may be able to make the trust the beneficiary on the account, but it depends on a variety of factors that you should check with your attorney. Retirement accounts do NOT go in the name of the trust, but sometimes it makes sense to make the trust the beneficiary (AFTER the spouse is named). Again, this is worth talking to your attorney about.

Once you have a trust, your work isn’t done! These three things are key to make sure you do not have to deal with probate court. If you have any questions, contact me!