Personal Property In A Trust In Maryland
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Assets can be transferred to a trust through methods like a deed of grantor(s) to trustee(s), title transfer, assignment of ownership, opening new accounts, naming the trust as a beneficiary, and more. Putting property in a trust can be done through various legal means, providing flexibility to the grantor.
Often, a Trust will be created along with a Will, which stipulates how holdings of the Trustor are to be distributed. Trusts can cover assets like real estate, but there may be other valuables that need to be transferred too. These valuables are known as Personal Property.
In most situations, one would typically want to maintain full control of personal property assets. As a result, few would use this type of trust planning for personal property. An exception might be an heirloom of great value that spends most of its time in a safe deposit box.
MAKING SURE THAT TRUST ASSETS ARE PROPERLY TITLED. For a Trust to provide its intended advantages, title to trust assets must be held in the name of the trustee. Only those assets that have been re-titled (i.e., legally transferred) into the name of the trustee are in the trust.
Some of your financial assets need to be owned by your trust and others need to name your trust as the beneficiary. With your day-to-day checking and savings accounts, I always recommend that you own those accounts in the name of your trust.
Always start by looking at the document that created the trust. This document, often called the "trust instrument," will probably be titled, for example, "the James T. Kahane Revocable Living Trust" or the "Nessler Family Trust." In particular, look for a list of assets at the end of the document.
The transfer document should list assets you're transferring to the Trust. It's good to be specific, but you can use broad categories (like “furniture,” “clothing,” “jewelry,” etc.) without listing every item in each of those categories.
First, the grantor works with an attorney who writes the trust document based on the grantor's wishes for the distribution of specific assets. The grantor then chooses a responsible individual or firm to serve as trustee — holding and administering the assets for the benefit of the beneficiary.
You must create the form stating precisely what you are transferring to the (named) trustee of the (named) trust. Sign and date the form. You must sign it once as the person assigning the properties to the living trust and once as the trustee. Include the word "trustee" after that signature.
