What to Put in a Trust: The Best Assets for Protecting Your Legacy
When you set up a trust, you’re taking one of the most critical steps in estate planning—ensuring your loved ones are cared for and your assets are protected. But after the trust is created, a crucial question remains: what should you actually put in your trust?
Not every asset belongs there, which is why so many families ask, “What are the best assets to put in a trust?” The answer depends on your goals, the type of trust, and how you want to transfer wealth. Below, we’ll walk you through the most valuable assets to include, what not to put in a living trust, and best practices for funding your trust.
The Best Assets to Put in a Trust
When deciding what to put in a trust, consider assets that would be difficult, time-consuming, or costly for your heirs to access without one.
Here are some of the most common and effective assets:
1. Real Estate
Your home is often your largest asset—and one of the first things to consider when putting property in a trust. Transferring real estate into a trust helps your beneficiaries avoid probate and simplifies handling out-of-state or multi-county properties.
Keep in mind that if the property has a mortgage, you’ll need to retitle it in the trust’s name, and some lenders may require additional paperwork.
2. Financial Accounts
From investment portfolios to cash accounts, many financial assets belong in a trust:
- Checking and savings accounts
- Non-retirement investment accounts
- Bonds, stocks, and certificates
- Money market accounts
- Certificates of deposit (CDs)
Placing these in your trust makes it easier for your trustee to manage and ensures your loved ones won’t face delays accessing funds. Because each type of account has its own requirements, always work with a professional before transferring.
3. Life Insurance Policies
Life insurance is one of the best ways to provide financial security for your family. By putting life insurance in a trust, you can protect the proceeds from creditors and help avoid probate. However, depending on how your trust is structured, it could also have estate tax implications—making expert guidance critical.
4. Tangible and Collectible Assets
High-value personal property like jewelry, artwork, antiques, and collectibles can be transferred into your trust. Collectible vehicles that appreciate in value may also be included, though title transfers and tax issues should be considered carefully.
5. Business Interests & Digital Assets
If you own a business, placing it in a trust can smooth succession planning and protect your family from business liabilities. And in today’s digital age, even cryptocurrency can be included—though it requires a trustee with the right expertise.
What You Should Not Put in a Living Trust
Just as important as knowing what to put in a trust is knowing what not to include:
- Retirement accounts (401k, IRA, 403b): better to list beneficiaries directly.
- Health Savings Accounts (HSAs): can’t be transferred, but you can name beneficiaries.
- Everyday checking accounts: keep these out unless necessary for estate planning.
- UGMA/UTMA accounts for minors: trusts may complicate distribution.
- Everyday vehicles: typically depreciating and not worth the paperwork (collectibles are the exception).
How to Transfer Assets into a Trust
Funding your trust is the final step—and it’s where many people go wrong. The process depends on the asset:
- Real estate: requires a new deed in the trust’s name.
- Bank/brokerage accounts: usually require retitling paperwork.
- Life insurance & annuities: you may transfer ownership or name the trust as beneficiary.
- Titled property: requires a quitclaim or similar transfer form.
Because every type of asset comes with rules, fees, or tax implications, it’s wise to work with a professional specializing in estate and trust planning.
Work with a Trusted Professional
Creating trust is only the first step—funding and maintaining it properly is just as important. With so much at stake, your legacy deserves guidance from someone with extensive expertise.
At Smith Marion, our estate and trust accounting experts have decades of experience helping families structure and protect their wealth through trusts. We’ll guide you through every step—working with your legal and financial advisors, choosing the right assets, transferring them correctly, and ensuring your trust works as intended.
Book a consultation with Smith Marion today to ensure that your trust protects your loved ones as you intend.
FAQs: What to Put in a Trust
1. What are the best assets to put in a trust?
Real estate, financial accounts, life insurance, and valuable personal property are top candidates.
2. Should I put my house in a trust?
Yes, transferring your home avoids probate and simplifies inheritance for your heirs.
3. Can I put retirement accounts in a trust?
Not directly. It’s better to name your trust as a beneficiary to avoid tax issues.
4. Is it smart to put bank accounts in a trust?
Yes, especially savings and investment accounts, so your trustee can access them quickly.
5. What assets should I avoid putting in a trust?
Retirement accounts, HSAs, everyday vehicles, and active personal-use accounts are best left out.