This week’s blog is a contribution from Kim Anderson Young, President of Security Title Inc., Guam’s premier title and escrow company.  Kim Young has over 30 years of experience in the real estate industry.  Her contacts are below her article.

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“So you have finally taken the big step and formed a trust in order to avoid your heir having to probate your estate and pay excess inheritance taxes when you move on to greener pastures.  Good for you!

The next important step is to transfer all of your assets into your trust. This is called “funding” the trust. Without taking this step, all your hard work and good intentions may be wasted.

Your trust attorney and/or tax accountant may recommend that you contact Security Title to conduct a title search of any property that you own; if you own multiple properties, we can even perform an asset search to make sure no property is left out. The title report will reveal the current exact ownership and legal description of your property and, will provide accuracy for the transfer from the current ownership into the ownership of your trust.

If you own property in your name (or as community property), transferring title to your trust is an easy step involving just a simple quitclaim deed or deed of gift. Your trust attorney and accountant will walk you through this step, providing the necessary documentation.

To ensure that your title insurance remains in full force and effect, Security Title can assist in the process. We will take care of recording the deeds and will provide an inexpensive endorsement to your title insurance policy that will extend the coverage from your individual names to your trust.

Trusts are becoming a very common estate-planning tool – and not just for the very wealthy. Not only do they minimize inheritance taxes and avoid probate, they can be used to care for the health, education and welfare of minor children, or incapacitated family members when you are no longer there to care for them.

Remember, though, a trust is not a stagnant entity – the care and feeding of it is your responsibility.  It needs to be continuously updated and properly managed to ensure it is the tool it is designed to be.”

Kim Anderson Young at kim@securitytitle.net or 1-671-647-8100

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