I Can Do It, You Can Do It, We Can Do It
Donate In Your Will by:
(1) Specific Bequest, (2) Residual Bequest, (3) Contingent Bequest.
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(1) Specific Bequest is when you specify a dollar amount, specific percentage, or specific property to HACWO.
(2) Residual Bequest is when your estate will pay all debts, taxes, expenses, and specific bequest. The remainder--the residual-- will be transferred to HAACWO/HACWO
(3) Contingent Bequest is when you can ask HACWO to receive all or a portion of your estate only under certain circumstances. You can name HACWO as a beneficiary of your estate only if there are no surviving close family members. This is true for childless couples or if a spouse does not live.
You can incorporate in your will the following:
"I give, devise, and bequeath to HACWO/HAACWO 2512 Virginia Avenue N.W. , #58097, Washington, D.C. 20037 the sum of _______(or otherwise describe the gift or specify a percentage of the estate.)"
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Donate or Transfer Real Property and Assets to HACWO by
Transferring your home (or any real property) to the trust with a deed transfer, a document that transfers ownership to the trust. A quitclaim deed is the simplest method (and one you can do yourself), however a warranty deed may be preferred since it ensures you have good title when you transfer it and makes it easier for your trust beneficiaries to sell down the line. You will want to check with an attorney about which type of deed is best in your situation. Some states require that all deeds be prepared by attorneys so you may not have a self-help option. Once the deed form is prepared, a real estate deed transfer must be filed with your county and you will likely need to pay a filing fee.
A deed transfer should not affect your mortgage, even if you have a due on sale provision. You should check on your title insurance (if you have any) though. You may be able to simply transfer it to the trust, or your title insurance company may require that the trust buy a new policy. Once the deed is transferred, you will need to change your homeowner’s insurance to indicate the trust as owner of the property. If you receive a real estate tax exemption, you will want to make sure that is transferred and you may need to show documentation of the trust to the taxing authority, such as a certificate of trust (a document your attorney can create that certifies the existence of the trust).
Transferring Motor Vehicles
If you would like to transfer ownership of your car or truck to your trust, you need to first determine if your state will allow a trust to hold ownership of a vehicle (check the DMV web site or consult your attorney). You also should call your insurance company to be certain they will continue coverage once the transfer is made. To transfer ownership, you will need to obtain a title change form from your DMV and complete it, naming the trustee (as trustee of your trust) as new owner. Sales tax should not apply to the transfer and if the clerk tries to apply it, you will need to speak to a supervisor. Note that owning a vehicle in the name of a trust can be detrimental if you are in an accident. The other person may assume you are wealthy if they realize your car is owned by a trust and sue. If you own a boat, you will need to follow a similar procedure to transfer title.
Transferring Financial Assests
To transfer assets such as investments, bank accounts, or stock to your real living trust, you will need to contact the institution and complete a form. You will likely need to provide a certificate of trust as well. You may want to keep your personal checking and savings account out of the trust for ease of use.
Other Personal Property
You likely own many things that you don’t have actual written titles or ownership documents for, such as jewelry, furniture, collectibles, and the miscellaneous things that fill your home. To place them in your living trust fund, you can name them in your trust document on a property schedule (basically a list you attach to the trust document that is referred to in the document) and indicate that their ownership is being transferred to the trust. If any of these items are insured, be sure to transfer the insurance to the name of the trust.
Items Not to Be Trusted
There are some things that cannot or should not be placed in your trust. Individual Retirement Accounts (IRAs) cannot be owned by a trust, so these must remain in your own name. In some states life insurance policies cannot be owned by a trust, and if it is allowed it generally is not advisable since it may make the benefits taxable.
Final Tips
If you purchase or inherit items after you create the trust, you will need to transfer those items to the trust as soon as possible. If possible and at your option, when you purchase items, purchase them as trustee of the trust so they are automatically placed in the trust. To further protect yourself, you will want a pour over will. This last will and testament can be prepared by your attorney and will indicate that any items left in your name are transferred to the trust upon your death, so that your trust will be complete and provide all the benefits you created it for.
Double check your list of assets to be certain you have moved them all to your trust. Ensuring that your living trust is properly funded will provide you with the protection you seek and the peace of mind that your affairs are in order.