Why not put property in a trust?

 Why not to put in a trust?

Hi. Shyam here. I want to talk to you for two seconds about living revocable trusts we've talked about that a lot in a lot of other site but this one I want to talk about what NOT  to put into your living revocable trust. There are things that don't go into a little revocable trust. 

For example an IRA is unique to you you have to own that IRA it can't go in the trust you could maybe make the beneficiary of the IRA the trust but you would never make the owner of the IRA the trust. You're the owner. You have to be the owner. You're the only one that can set up an IRA. Beneficiary, trust? Making the trust the beneficiary of the IRA now you would do that in the IRA document not in the trust that's a whole another discussion on another YouTube but you can yes and no. You're not going to put any of the ERISA the Employee Retirement Income Security Act stuff that's your 401k you will be the owner of the 401k and actually the 401k and the IRA are both trusts. So you name a beneficiary you have a trustee and so we won't make the owner of your 401k or your SEP or whatever it is or your formal 3B or whatever you won't make your living revocable trust the owner. 

That's a contract basically between you and the company providing the service the "trusteeship" of the retirement plan or the benefit plan. Now you will name beneficiaries for your 401k or SEP or whatever it is those are normally going to be the children or the spouse first and then the children you could have a living revocable trust act as the beneficiary for the children now I like I said that's another story but you will not put that stuff into the IRA or excuse me into the trust. You'll put things that you sign for that aren't actually already a trust. Other things you don't have to put into a trust you could mention them but you certainly don't have to put them into the trust and that is anything that you can transfer and not have to have a written signature in order to make that transfer. I tell people if you can take it out on the front lawn and sell it at a yard sale and not  have to sign for it, you don't have to put it in the trust. Or if your neighbor can break into the house and get that thing that asset and then sell it without your signature you don't need to put it into the living revocable trust now they can't break into your garage take your car and sell it without your signature your signature has to go on the title in order to transfer the title. They can't break in and get into the bank account because your signature is on it. They can't sell your piece of real property your signature's on it. 

Those are the things that you DO put into a trust. So basically the only things that you're not going to be putting into a trust are things that don't require your signature and they could be mentioned in the living revocable trust particularly if  you have a schedule that allows you to distribute personal items that would be attached to the back of the trust and that's the way you avoid the family fight but you could mention specific things that don't have to have your signature but you don't need to mention those--there's no probate on them and what we're doing is avoiding probate there isn't any probate on the 401ks or the IRAs either because you've named beneficiaries and their unique to you you have to be the owner of the IRA like I said. 

So other than the retirement plans and stuff that doesn't require your signature there aren't a lot of things that you wouldn't--not--put into your living revocable trust. This is shyam talking about things you . 

DON'Tput into your living revocable trust