Is it important to put assets into my trust during my lifetime?

Placing your assets into your trust during your lifetime is very important. In the case of the simplest form of trust, the living revocable trust, in order to avoid probate it is necessary that your assets be placed into the name of your trust during your lifetime. Operating such a simple trust where you can be your own trustee and beneficiary is not complicated. You can use your own social security number as the tax identifying number for the trust and need not file separate federal income tax returns for the trust. Rather, you merely include the trusts's income on your own federal income tax return. In the case of marital deduction credit shelter trusts it is critical that your trusts be properly funded in order to avoid estate taxes. If you set up marital deduction trusts, but kept title to your assets in joint names with your spouse, you would not be able to utilize the tax saving provisions of your trust. It is imperative once you have created a trust to discuss with your attorney the steps necessary to properly fund the trust.