Which Assets Should You Leave Out of Your Revocable Trust in Maryland?

A revocable living trust is a powerful way to simplify the probate process for your surviving loved ones. If properly structured, a trust can enable your property to bypass probate in Maryland, which can save time and reduce costs.

Most revocable trusts include a variety of assets, including real estate or investment properties, bank accounts, stocks or bonds, family heirlooms, and arts and collectibles. Some assets, however, are best left out of your revocable trust. These include the following:

• – Retirement accounts, such as IRAs, 401(k)s, and annuities
• – Health Savings Accounts (HSAs)
• – Motor vehicles
• – Checking accounts used for paying bills

Transferring these kinds of assets into a trust can create unintended tax consequences or unnecessary administrative hassles. Instead, you might consider naming your trust as a primary or secondary beneficiary of these accounts.

Deciding which assets to transfer to your revocable trust is a critical part of estate planning. The wrong choices could easily impact your taxes, your beneficiaries, or the ease with which your estate is administered.

For a free, confidential conversation to learn the benefits and limitations of a Revocable Living Trust, contact Maryland estate planning attorney Stephen J. Reichert at 410-790-7851, sreichert@reichertlegal.com or by clicking here.

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