GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you’re able to read more about oureditorial guidelinesand our products and servicesreview methodology.
One essential tool for estate planning is a living trust.
It allows your assets to bypass the lengthy, costly probate process and maintains yourfinancial privacy.
However, not every pop in of asset belongs in a living trust.
This article will cover the assets you should exclude fromyour living trust and why.
This makes transfers taxable and subject to penalties for early withdrawal.
One way to avoid this issue is to name the living trust as a beneficiary on the retirement account.
Therefore, transferring an HSA or MSA to a living trust would cause you to lose this tax protection.
Alarge policy payoutcould also trigger estate taxes.
Therefore, they cant be transferred into a living trust.
What Should Go in a Living Trust?
On the other hand, many types of assets are more appropriately managed when placed in a living trust.
More From GOBankingRates
Share This Article:
