Big Firm Services with

Small Firm Personal Attention

Are there assets I should not include in my revocable trust?

On Behalf of | May 11, 2022 | estate planning |

Revocable trusts — also referred to as living trusts — can be a significant part of a well-rounded estate plan. Assets in a revocable trust bypass probate while still leaving your loved ones with an inheritance, which can save time and money after you pass. While revocable trusts have many benefits, there are some assets you may want to consider including in your trust and some assets you may wish to leave out of your trust.

What can I include in my revocable trust?

Your revocable trust must be funded. This means assets are placed in the name of the trust and are managed by you or your trustee. Assets you may want to consider including in your revocable trust include:

  • Real estate
  • Bank accounts
  • Stocks and bonds
  • Collectables
  • Jewelry, and
  • Art

These are only some examples of what you might include in your revocable trust. Other assets can be included as well.

What might I want to keep out of my revocable trust?

There are some assets that may be better left out of a trust. Assets you may want to consider keeping out of your revocable trust include:

  • Retirement accounts such as a 401(k), IRA and annuities
  • Health savings accounts
  • Vehicles, and
  • Accounts used to pay monthly bills

If these assets are placed in a trust, it could trigger tax consequences. With regards to accounts used to pay monthly bills, your bank may require you to close the account and open a new one if you try to transfer the account to a trust. This can be a hassle, so it may be better not to include that account in your trust.

Learn more about revocable trusts

Revocable trusts are useful estate planning tools, but they can be complicated. You will want to carefully think about what to include in your revocable trust and what to keep out of it. You can make informed decisions with the right help and information.


FindLaw Network