One removes assets from an estate by transferring the assets to a family trust, says Legal Zoom. The assets should be transferred by deed or letter depending on the type of asset.Continue Reading
A family trust is a revocable living trust, meaning that it is in effect during the life of the grantor, and he may terminate or modify it, according to Good Financial Cents. The grantor is the person who created the trust. The grantor names his family members as beneficiaries of the trust by describing what asset or assets each person should receive. During the grantor's lifetime, the beneficiaries do not have access to the assets, except as permitted by the grantor. When the grantor dies, the trust becomes irrevocable and the beneficiaries receive the assets without needing to probate. The assets are not included in the estate for estate tax purposes.
Creation of the trust requires a legal document that names the trust, the grantor, the trustee, the successor trustee, the assets and the beneficiaries, says The Nest. The trustee is the person who carries out the terms of the trust. The trust must be signed before a notary public. Next, the assets must be transferred into the trust. If the assets are titled, such as a house, the title must be changed to name the trust as the owner. Once this is complete, the assets are no longer considered part of the grantor's estate.Learn more about Financial Planning