Q: What does a basket have to do with a living trust?

| Jun 30, 2021 | Estate Planning, Q&A, Trust And Estate Administration |

A: A basket is actually a great way to conceptualize the way a living trust works! Think of a living trust as a basket with a set of instructions on the inside. This set of instructions declares what is to happen with all of the assets inside the basket upon the death of the person who made the basket (or the living trust). This is why re-titling assets into the trust name is so important. Remember, only assets inside the basket are protected from the court-supervised probate process. So a person creating a trust who dies with no assets in the trust name creates the same frustrating result as a person who shows up to a picnic with a bunch of hungry people and realizes that he brought an empty basket!

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