What Assets Can Be Placed in a Trust?

Creating a trust is one of the most powerful ways to protect your assets, provide for your loved ones, and establish a lasting legacy. 

At Jordan & White, we’ve been guiding families through estate planning since 1938, helping them secure their futures and ensure their wishes are honored. 

Trusts are an incredibly versatile tool, capable of holding a wide variety of assets. 

Whether you’re just starting to consider your options or already have some ideas in mind, let’s explore what you can place in a trust and how it can benefit you and your family.

Trusts: The Basics

Before diving into the types of assets you can place in a trust, let’s take a moment to understand how trusts work. A trust is essentially a legal arrangement where a grantor (the person creating the trust) transfers ownership of their assets to a trustee, who manages those assets for the benefit of the trust’s beneficiaries. 

Trusts can be revocable (you can modify or cancel them during your lifetime) or irrevocable (permanent, with stricter rules).

By transferring assets into a trust, you can ensure they’re handled exactly how you want—whether you’re aiming to avoid probate, minimize taxes, or provide for loved ones. Now, let’s dig into the types of assets that can be placed in a trust.

Real Estate: Protecting Properties for Future Generations

One of the most common types of assets placed in a trust is real estate. This can include:

  • Primary residences: You can transfer your family home into a trust to ensure it passes smoothly to your heirs.
  • Vacation homes: Preserve cherished family retreats for future generations without the hassle of probate.
  • Commercial properties: Streamline the management and transfer of rental income properties or business locations.
  • Land or undeveloped property: Even vacant land can benefit from the protection of a trust.

If you own rental properties, placing them in a trust can simplify management while protecting your investment for the long term. It can also help avoid disputes or confusion about property ownership after you pass.

Financial Assets: Securing Wealth and Investments

A trust is an excellent way to manage and safeguard your financial assets, including:

  • Bank accounts: Checking and savings accounts can be transferred into a trust for easier access and management.
  • Investment accounts: Stocks, bonds, mutual funds, and money market accounts are all commonly placed in trusts.
  • Life insurance policies: While life insurance policies aren’t usually placed directly into a trust, the trust can be named as the beneficiary. This allows the proceeds to be distributed according to your wishes.

What about retirement accounts? Many people assume that accounts like 401(k)s or IRAs can’t be placed in a trust. While it’s true they can’t be directly transferred, you can name the trust as the beneficiary. This can be a smart move to ensure funds are distributed appropriately and according to your plans.

Business Interests

For business owners, trusts offer a way to protect your hard work and plan for the future:

  • Privately held shares: You can transfer ownership of your business shares into a trust to provide continuity and financial security for your family.
  • Partnership interests: Safeguard your stake in a partnership and make it easier for your successors to step in.
  • LLC memberships: Ensure your membership interest in an LLC is handled according to your wishes, avoiding disruptions to the business.

A trust can help your family avoid complex legal and financial challenges, especially if your business interests represent a significant portion of your estate.

Personal Property: Treasures Worth Protecting

Trusts aren’t limited to large financial assets—they can also hold items of personal and sentimental value. Examples include:

  • Jewelry: Protect family heirlooms and ensure they’re passed down to the right individuals.
  • Artwork and collectibles: Fine art, rare stamps, or other collections can be preserved and distributed according to your wishes.
  • Vehicles: While everyday cars may not need to be placed in a trust, valuable or collectible vehicles are often included.
  • Household items: Antiques, furniture, and other possessions can be added to a trust to avoid disputes among heirs.

Intellectual Property: Protecting Creative and Professional Assets

If you own intellectual property, placing it in a trust can help ensure its value and future use are managed properly. This can include:

  • Patents: Protect inventions and ensure royalties are distributed as planned.
  • Copyrights: Manage the use and earnings from books, music, or other creative works.
  • Trademarks: Secure the future of your brand or business identity.

Why Place Assets in a Trust? 

There are many advantages to placing assets in a trust, including:

  • Avoiding probate: Assets in a trust don’t go through probate, making distribution faster and more private.
  • Minimizing taxes: Certain types of trusts can help reduce estate and inheritance taxes.
  • Protecting assets: Shield your assets from creditors or lawsuits while ensuring they’re used responsibly.
  • Planning for incapacity: A trust allows your trustee to manage your assets if you become unable to do so.
  • Providing for loved ones: Whether it’s young children, family members with special needs, or others, a trust ensures they’re cared for financially.

Ready to Secure Your Legacy?

If you’ve been thinking about how to protect your assets and provide for your loved ones, creating a trust is a smart and meaningful step. 

At Jordan & White, we’ve been helping families for over 85 years, offering guidance and peace of mind. Call us at (978) 744-2811 or visit our website to schedule a consultation. Let’s work together to secure your legacy and build a future you can feel good about.