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Can I Invest With My Living Trust?

On Behalf of | Sep 16, 2022 | Wills And Probate

If you have established a living trust (or any other type of trust for that manner), you might be wondering whether you can actually put your money to work rather than simply letting it sit there. Fortunately, you can invest funds in your living trust, allowing your wealth to accumulate over time. Perhaps more importantly, investing your trust in this manner can provide your beneficiaries with even more financial security once you are gone. What is the best way to invest funds in a trust? How do you set up your trust so that investing is easy? What are some things to avoid?

In truth, internet research can only get you so far. If you would like to receive accurate advice on this matter, you should get in touch with an estate planning attorney in New Jersey. Our legal professionals can help you strive for the best possible results, and we can also help you set up a trust if you have not already done so. With all that said, there are a few basic factors you should be aware of if you are planning to use your trust as an investment vehicle:

You Decide How Funds are Invested

The first thing you need to know about investing with a trust is that you get to make the rules. You can make it quite clear how you would like your funds to be invested – or whether you would like your funds to be invested at all. You can also forbid certain investments, such as cryptocurrencies or anything else you think is unsuitable. In addition, you can designate a trustee who you think will make sound, reliable investments and leave it up to them to make important decisions.

Transferring Your Shares to a Trust

A popular choice for many investors and executives is to transfer shares to a trust. This is especially helpful for stocks that provide significant dividends, as these dividends can accumulate within the trust before being distributed to beneficiaries. For many grantors, this presents an excellent way to ensure family members are taken care of upon their passing.

Liquidating Assets and Investing the Funds

You can also make it clear that you would like any funds from your estate to be invested intelligently. This means that when your physical assets are liquidated and sold, the resulting funds can be used to buy real estate, a diversified portfolio of stocks, or anything else that might be profitable.This means that you can maximize the worth of your estate considerably upon your passing.

Enlist the Help of a Qualified Attorney Today

If you have been searching for a qualified estate planning attorney in New Jersey, look no further than Giro, LLP, Attorney at Law. Over the years, we have helped numerous individuals set up trust and optimize their finances, providing not only favorable results for the grantor, but also their beneficiaries. Get in touch at your earliest convenience, and we can help you get started with an effective plan.