Harness Money

Remember that step earlier where you filled out your must have documents?

One of those was a revocable trust.

A revocable trust is simply a place where you can park you investment accounts in case anything ever happens to you. If you are managing your money wisely and you die with a stock account, it will go through the court system! Probate. Eeeek.

Long and messy process.

If you have those accounts within a trust the money will pass on to the trust without doing anything and someone else can take over.

It is not enough to set up the trust, just like a stock account a trust is just a place to put assets. You have to fund the trust. Your real estate, stock account, 401k. You have to manually change the name of those account to be that of the trust.

You become the tustee of the trust and direct what happens to the assets within the trust. If something happens to you then beneficiary takes over.

Click here to take the next Harness Money step.