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Ted discusses the critical importance of properly funding a living trust, particularly focusing on investment accounts. He explains the common misconception that simply having a trust document is sufficient, emphasizing that assets must be retitled or designated correctly to avoid probate. Ted outlines three main methods to connect investment accounts to a trust, highlighting the benefits and limitations of each. He also warns against common pitfalls, such as naming individuals directly as beneficiaries or failing to take action altogether. Finally, he advises listeners on what assets should never be placed in a living trust to avoid potential tax implications and other issues.

Takeaways

• A trust only controls what is actually inside it.
• Investment accounts must be retitled to be included in a trust.
• The most protective option is to retitle accounts to the trust.
• Naming individuals directly as beneficiaries can bypass the trust.
• Doing nothing with your trust can lead to probate.
• You need a financial power of attorney for incapacity.
• Transfer on death designations can simplify account management.
• Certain assets should never go into a living trust.
• The IRS treats you and your revocable trust as the same taxpayer.
• Always check how your accounts are titled.

Resources:

• Gudorf Law Group
• The Ohio Estate Planning Guide - Free Book
• Gudorf Law: What We Do and How We Help Webinar
• Don't Go Broke in Nursing Home Workshop
• When a Loved One Dies: A Legal Guide - Free Book
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