For most people, a comprehensive estate plan begins with a Last Will and Testament but does not end there. Additional documents, strategies, and legal tools are typically used when creating a thorough estate plan. A trust agreement, for example, is a common addition to an estate plan. If you are considering the addition of a trust agreement into your estate plan you may be wondering “ How is out of state property funded into my trust? ”
Trust agreements are a popular addition to an estate planning in large part because of the flexibility they offer and because of the numerous estate planning goals that can be accomplished with a trust agreement. Objectives ranging from asset protection to incapacity planning can all be achieved using a trust agreement if the proper type of trust is used and the agreement is drafted properly.
One of the advantages to using a trust agreement is the fact that a trust can be funded using just about any type of assets. Cash, stocks and bonds, real property, and even personal property can all be used to fund a trust. Out of state property is funded into your trust agreement in the same manner as in state property. The same steps are required to transfer ownership of an asset whether it is in-state or out of state property. The primary requirement is simply that ownership of the asset is transferred to the trust. If the property in question is real property, for example, the deed or title to the property must be transferred from your name to the name of the trust.
One consideration when property is transferred from out of state, however, is the tax implications of the transfer. When real property changes ownership state law often requires a re-assessment of the value for the property for tax purposes. This could change your tax burden on the property in question as could the fact that the property is now being taxed in a different state. This is one of the many reasons why you should always work with an experienced estate planning attorney when creating a trust agreement.
If you have additional questions or concerns about trust agreements, or your Illinois estate plan in general, contact the experienced Illinois estate planning attorneys at Nash Bean Ford & Brown, LLP by calling 309-944-2188 to schedule your appointment today.
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