Few planning moves feel as personal as deciding who will manage your belongings if something happens to you. At Peach State Wills and Trusts©, we guide Georgians through choices that fit their goals, budgets, and family dynamics.

A living trust is one of the strongest tools in that toolkit because it lets your property pass outside of probate while you stay in control during your life. It can also provide asset protection for your beneficiaries after you pass away.

This article will walk you through which assets usually belong in a revocable living trust, which ones you might leave out, and how to finish the job by “funding” the trust correctly.

Assets That Can Be Included in a Living Trust

Putting property into a trust is called “funding” the trust. Funding changes the legal owner from you as an individual to you as a trustee, so the trust, not the probate court, directs what happens later.

Real Estate

Homes, rental houses, land, and commercial buildings can be moved into a living trust through a new deed. Georgia law says the deed must be signed by the appropriate witnesses and notary, and recorded with the clerk in the county where the land sits.

If a mortgage is still in place on real estate that is not your personal residence, it may be appropriate to touch base with the lender first. While most transfers of a personal residence owned by the trust grantor to the grantor's revocable trust for estate planning purposes are automatically authorized under federal law, there are some cases where the transfer might need lender approval.  Many lenders will allow transfers to a revocable trust, but they may want a brief letter or a copy of the trust's certification to update their records prior to providing their consent to a deed transfer.

After the deed is filed, make sure title insurance and homeowner coverage reflect the trust as an additional insured party, or future claims could be delayed or potentially not covered.

Transferring real property often sparks questions about taxes, homestead exemptions, and refinancing. Speaking with our office before you sign the deed can help keep those benefits intact.

Bank Accounts

Checking, savings, money market accounts, and certificates of deposit can all sit in a trust. Each bank uses its own forms, so ask a branch manager for the exact steps.

With CDs, the bank may require a new instrument in the name of the trustee. Moving a CD before maturity can create a penalty, so consider timing or ask if the bank will waive the fee.

A short checklist helps the process move faster:

●  Bring a copy of the trust or a certification of trust.

●  Confirm whether the account number will change.

●  Order new checks showing the trust, if needed.

Following that list keeps statements consistent and avoids confusion during annual tax reporting.

Investment Accounts

Stocks, bonds, and mutual funds can be transferred by retitling the brokerage account into the trustee's name. When you hold paper certificates, the transfer agent must reissue shares to the trust.

Many clients take the chance to merge stray certificates into one electronic position, cutting down on future paperwork.

Life Insurance

Usually, the policy stays in your name, but you can name the trust as the primary or contingent beneficiary if that is consistent with your estate planning goals. Doing so directs the death benefit into the trust's instructions and lets the trustee use the funds to support beneficiaries as appropriate, and also potentially keep such funds from being claimed by any estate creditors.

High-net-worth families sometimes create an Irrevocable Life Insurance Trust, or ILIT, to remove the benefit from the taxable estate. That approach is beyond today's scope, yet worth discussing if your estate may exceed federal estate tax thresholds.

Tangible Personal Property

Jewelry, artwork, firearms, collectibles, and household furniture can sit inside a trust by signing a simple assignment of property. For pieces with separate insurance riders, ask the carrier to add the trust as the named insured.

Keep an inventory sheet with photos, serial numbers, and approximate values. That document helps the successor trustee hand out items exactly as you wish.

A living trust can even reference a “personal property memorandum,” letting you change who receives certain items without amending the whole trust instrument.

Business Interests

You can transfer a sole proprietorship, partnership share, or LLC membership into a living trust. This usually happens by assigning your ownership certificate or amending the operating agreement.

Some LLC operating agreements or corporate bylaws may limit transfers, so review those before making any assignment, and also review any applicable buy-sell agreement as well. If others must approve, obtain written consent before completing the assignment of your ownership interest.

Moving the interest to a trust can spare your loved ones from running the company under court supervision, which may also add time delays, court oversight, and additional costs to administering your estate.

Assets That Should Not Be Placed in a Living Trust

While a trust can hold plenty of property, some assets work better with a different approach.

Retirement Accounts

401(k)s, traditional or Roth IRAs, and 403(b)s should remain in your name until death. Transferring ownership early counts as a full withdrawal, sparks income tax, and may trigger a penalty if you are under age fifty-nine and a half.

Instead, list the trust as a beneficiary if that is appropriate with your plan (and if your trust contains the correct provisions for managing qualified retirement funds). This keeps tax-deferred growth intact but lets you control who receives the funds and how quickly they may draw them out.

Health Savings Accounts (HSAs)

HSAs cannot change ownership during life, but you can name the trust as the successor beneficiary. That way, any balance flows in the same direction that cover your other property.

Vehicles

Every day, cars, boats, or motorcycles rarely belong in a trust because they lose value steadily and require frequent title updates. Georgia also offers a simple process to transfer a single vehicle by affidavit if the estate avoids probate.

An exception exists for collectible or appreciating vehicles. If you own a classic sports car or restored antique truck, placing the title in the trust may make sense to preserve continuity and support special insurance coverage.

Secure Your Future with Peach State Wills and Trusts©

We help Georgia families create estate plans that reflect real-life needs, whether you're raising young children, managing a blended family, or planning for business succession. We explain everything in plain English and draft documents that stand strong when you and your loved ones need them most. To get started on a living trust or complete your funding process, call us at 678-344-5342 or visit our Contact Us page. A brief conversation today can save your family months of stress, as well as unnecessary costs and delays, tomorrow.