For individuals with valuable assets, setting up a living trust is an essential part of estate planning. Doing so allows the property to bypass probate upon your passing and go straight to your designated beneficiaries. However, some possessions and funds are better suited to this solution than others. Here's a closer look at which items to include. 

What to Put Into a Living Trust

1. Real Estate

Typically, real estate is the highest-valued asset a person owns, which can result in costly probate expenses. If you simply give property to a loved one, it skips probate, but since the IRS views it as a gift, so you could face a gift tax. Alternatively, you can make a family member a joint owner by adding them to the deed. While they automatically get full ownership upon your death, they'll still face up to 50% of the value as a gift. 

However, moving a structure or piece of land to a living trust can save you and your beneficiaries a significant amount of money. While they may still face estate taxes, you can assist them by leaving funds in the living trust as well. A real estate appraisal can help you correctly value the property to estimate the costs. 

2. Collectables

The potential value of collectables, like art, antique furniture, and coins, varies widely by type, style, and the market, ranging from hundreds to millions of dollars. They also tend to increase in value as they age, so keeping them out of probate is the most economical solution, even if their current value isn't significant. However, avoid placing items in a living trust that you often sell or trade to minimize paperwork and prevent legal issues from arising. 

3. Stocks & Bonds

There are a few different estate planning methods to pass on investment accounts. Firstly, you can move them individually into the trust. You can also combine multiple stocks and bonds into a single account or many new accounts. 

The latter allows you to divide the stocks and bonds evenly among multiple beneficiaries. Additionally, once they're moved to the trust, you can continue buying and selling in the name of the trustee. 

If you're getting started on the estate planning process, reach out to Concept Appraisal Services to help with property valuation. Based in Littleton, CO, owner and operator Connie Jo Esbenson have successfully performed over 30,000 appraisals across Jefferson County. Utilize her real estate expertise for your needs by requesting a free quote online or calling (303) 506-6254 to speak to a team member.