Revocable trusts – Don’t forget to fund the trust throughout your lifetime

Description

Abstract: Many estate plans are built around revocable trusts (sometimes called “living trusts”). After a revocable trust is created, the trust creator must fund it by transferring assets to it. However, not all assets belong in a revocable trust. Indeed, it’s important to keep certain assets out of the trust to avoid adverse consequences. This article examines what type of assets to use (and not to use) to fund a revocable trust. A sidebar answers the question of whether life insurance should be used to fund a revocable trust.