A trust is an essential estate planning tool. Unlike a will, it allows you to put conditions and have control over the distribution of your assets after you die. It also offers extra protection and reduces the chances of issues with your estate during probate in Tennessee. However, there is a mistake you can make with a trust that will leave your estate caught in probate.
CNN explains that any asset you put in the trust must go into the name of the trust. You will need to change the title on the asset even if you are still using the asset and plan to do so until your death. If you do not title assets in the trust name, it will cause issues after you die.
The court will take any asset not titled in the name of the trust and treat it like an asset that does not have trust protection. It can then distribute that asset in any way it chooses. This means the asset will go through probate. It may also not go to the heir of your choice but rather one the court chooses based on the law.
If you make this mistake, it can render your trust useless. You will not have the protections or the other benefits of the trust for your assets or heirs. When the court probates an asset, it will follow the law as to who receives it. This may go against your wishes. That is why you must remember to title assets properly. This information is for education and is not legal advice.