Living trusts allow a family to customize their estate planning based on the individual needs of each family member. It is also effective in avoiding taxes as well as the probate process which we all know can be very expensive.

The death of a loved one can start off a complex legal and business process. Often, it falls to relatives to deal with the affairs of the departed’s estate. It is important that living trusts and wills are carried out and followed through to avoid issues that hurt beneficiaries after the departure of their relative.

Typically, it is important to start funding a living trust while the person is still around to do so. The effectiveness of a living trust is dependent on this. It means that trusts needs to have assets re-titled to it in order to reflect the ownership of the trust. Bank accounts, investments, stocks, bonds and assets all have to be re-titled accordingly.

Bank accounts can be easily transferred and bank managers can assist in the process. Investment accounts require that a new account be established first before transferring existing accounts. Stocks are a bit more complicated as it will require a stock power which must include a Medallion guarantee stamp. Savings bonds require that government forms be filled out and stamped with the same Medallion stamp.

Real estate is transferred into a trust through a new deed prepared by an attorney. Personal property can be willed into a trust or transferred using an Assignment of Personal Property. Approval of other partners is required before interests in private stocks can be transferred. This may require a lawyers help. Life insurance can be easily designated to the trust which will act as the beneficiary of the policy.

Finally, like most states, retirement accounts like IRAs may require the help of an expert. Often IRAs are not taxed while it is locked. A transfer of these accounts may have serious tax ramifications.

This is why the help of a knowledgeable legal professional may prove invaluable in estate planning because they have the knowledge and experience to properly manage and execute any estate plans. Legal professionals are able to sit down, discuss available strategies and even do the necessary legwork. They can also be relied on to carry out the estate’s will and trust.