It is certainly possible to put physical property into a trust. It is true that many people set up trust funds just to hold financial assets, such as someone who leaves a financial inheritance in a trust earmarked for a grandchild’s college education.
Do not assume that the trust can only address financial assets. That said, depending on the type of physical property and the ownership structure, there may be certain steps that need to be taken to properly transfer the asset into the trust.
A quitclaim deed
For example, with real estate, a quitclaim deed may be necessary. This has to be appropriately filed with the county clerk. Related documentation includes a certificate of trust, a memorandum of trust and a copy of the trust documentation itself. If there is a mortgage or the real estate is in an homeowners’ association, permission may be needed from the HOA or the mortgage lender.
A title transfer
With a vehicle, transferring the title into a trust often means retitling it. This can cause it to transfer immediately into the living trust. The trust becomes the owner of the vehicle, rather than the individual.
Another option is simply to make the beneficiary the trust itself. The estate plan stipulates that the vehicle should be passed to that beneficiary, and so the trust takes possession when the original grantor passes away.
These are other ways in which physical property can be put into a trust, which can sometimes aid with estate administration. Those who are interested in doing so need to know what legal steps they need to take.