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|What Happens if You Forget to Put Title to an Asset into Your Revocable Living Trust?|
|by: Phil Craig|
Previously, we discussed the problems that arise if you fail to place title to your assets into the name of your revocable living trust.
In one article, I shared the problem of the widow. She learned that her husband had assets that were in his name alone and not put into the title of their revocable living trust.
An attorney was now quoting her a fee of thousands of dollars to clean up the revocable living trust and try to avoid probate.
In my Multi-Media course I describe what you can do if you find that an asset is left out of your trust.
About 13 years ago, the California Court of Appeals decided a case where a man had died without placing title to his assets into his revocable living trust. The appeals court decided that even though the man had failed to actually place title into his revocable living trust, the man had demonstrated enough of an intent that his assets be held in the revocable living trust. Therefore, the court held that the revocable living trust held legal title. The court then instructed the lower court to issue an order converting the assets into the title of the revocable living trust.
This case is now used in California to help avoid probate if assets are found to not be in the name of the revocable living trust. The key is that there has to be a demonstration of intent that the assets be held in the name of the revocable living trust.
In my practice I used to prepare a document called "General Assignment of Assets to Revocable Living Trust." In it, I would declare the intent of the parties to have their assets held in the title of the revocable living trust. It then went on to say that if there was an asset that was left out, it was to be placed into the revocable living trust on request by the trustee. This gave the trustee the elements needed under the court of appeals case to avoid probate.
You should ask your estate planning professional if a "General Assignment of Assets" to your revocable living trust is appropriate for you.
Good luck and until next time,
P.S. Feel free to forward this on to any friends.
About The AuthorPhil Craig is a licensed attorney and entreprenuer. He started practicing law at age 25 in 1979. He does not take on any more clients, but is advisor to some of the biggest names in the internet world. He shares his knowledge gained over the last 25 years at his Living Trust Secrets newsletter site: click here=========>http://www.LivingTrustSecrets.com
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