My client had his son call; he is in the hospital. He expects to get better, but he did start thinking about what would happen if he died. I did his Living Trust several years ago, and just as I tell all my clients, “you have to make sure all your assets are in your Wagon, and if you refinance your house, they might take it out.”
I use a Wagon to illustrate how a Trust works. A Trust, like a Wagon, can hold assets, but if the asset isn’t in the Trust, then the Trustee is not in charge—just like the person pulling a wagon is not in charge of toys that aren’t in the Wagon. After my clients sign their Trusts, we work hard to make sure all the assets get into the Wagon, and I always take care of their real estate.
The client had remembered my warning and thought he messed up. He refinanced during Covid. I pulled the title to his home, and his house was not in his Trust. I immediately prepared a deed and sent it to his son. His son was able to get a notary to come into the hospital, and his home is now back in his Trust. He is getting better. He is grateful that his son won’t have to spend thousands of dollars to fix this mistake when he dies.
If you have a Trust and aren’t sure if all your assets are in your Trust, give me a call. We can set up a meeting to make sure you “put everything in your Wagon” (everything in your Trust).
