When you think about a trust, you’re really thinking about safeguarding your values, not just your valuables. Trusts give you a unique way to send your intentions forward, whether that means protecting the family home, scaling a business legacy, or preserving a sentimental heirloom. Today, trusts can hold almost anything. But knowing what fits best and how to title it can make all the difference in delivering your legacy with care and confidence. What types of property can I place in a trust? And, what does funding a trust mean? Continue reading to learn the answers to your questions and to discover more about trusts.
Real estate and trusts
Real estate is often the first thing people think of when creating a trust, and for good reason. Your home, whether that’s a cozy suburban house, a vacation cabin, or even undeveloped land, carries more than monetary value. It carries a lifetime of stories and realized dreams. Transferring ownership into your trust with a deed is typically straightforward, and usually the mortgage follows without triggering lender issues. By placing your real estate in a trust, you’re helping your heirs avoid costly, publicly visible probate, even across county lines or states. This is especially important in states like Georgia or California, where multi-jurisdictional properties can complicate matters. Trusts aren’t limited to residential real estate either. Commercial buildings, agricultural land, or rental properties can all gain smoother transitions with proper titling and trust provision.
Financial and investment accounts
Once you’ve got real estate, the next most common category is liquid or near-liquid assets. This includes checking and savings accounts, certificates of deposits, money market accounts, and brokerage holdings. These often hold the key to meeting both immediate and long-term goals, so having them funded into your trust allows for quick access and continuity. While you’ll need to retitle the accounts or create new ones under the trust, it’s a practical step with big benefits. Non-retirement brokerage accounts, stocks, bonds, and mutual funds are particularly suitable. Trusts handle them as transparently as your checking account once properly titled. Retirement accounts like IRAs and 401(k)s require more care. And sometimes they’re better left outside with beneficiary designations intact to avoid disqualification of tax advantages.
Business interests and collectable assets
Have a business you cherish? Whether it’s an LLC, partnership, or closely held corporation, transferring your share into a trust signals to successors how you want it to continue. It also helps minimize disruption in tough transitions. You’ll need board or partnership approval if required, but this kind of seamless planning can make succession feel like the reasonable next chapter rather than a crisis. What about less liquid but deeply meaningful assets like art, jewelry, collectibles, or custom vehicles? These also belong in a trust, especially when a “personal property memorandum” is added to allow updates without amending the trust itself. For heirs to follow your intended distribution, pairing it with photographs, serial numbers, or descriptions can make a world of difference. It’s essential that you be as specific as possible when listing any asset in a trust.
Life insurance and annuities
Life insurance policies are often overlooked as trust assets, but they can play a critical role in estate planning, especially for families concerned about liquidity or tax exposure. When a trust is named the owner and/or beneficiary of a life insurance policy, it allows the proceeds to bypass probate and, depending on the structure, potentially avoid estate taxation. This is where an Irrevocable Life Insurance Trust (ILIT) comes in. An ILIT is a specific type of trust designed to own your life insurance policy outside of your taxable estate. By doing so, the death benefit can be kept entirely separate from your estate’s valuation, which can significantly reduce or eliminate federal estate taxes for high-net-worth individuals.
However, the IRS has strict rules. If you transfer an existing policy into an ILIT, and you pass away within three years of that transfer, the policy’s value can be pulled back into your taxable estate under what’s called the three-year look-back rule (IRC § 2035). That’s why many estate planners recommend either establishing the ILIT before purchasing the policy or being strategic about timing and funding. The trust must also be carefully administered. The grantor cannot retain control over the policy, make premium payments directly, or violate what the IRS calls “incidents of ownership.” Otherwise, the tax benefits could be lost. “Incidents of ownership” refers to any control the policyholder retains over a life insurance policy, such as the ability to change beneficiaries, borrow against the policy, or cancel it. This control could cause the policy’s proceeds to be included in their taxable estate.
As for annuities, they’re more nuanced. Some annuities can be held in trust to provide a predictable income stream or death benefit for heirs. But annuities have complex tax rules depending on whether they are qualified or non-qualified, and how distributions are structured. In many cases, naming a trust as the owner or beneficiary can change how those payments are taxed. Sometimes this can accelerate taxation or trigger unfavorable treatment. That’s why it’s essential to work closely with a financial advisor or estate planning attorney before transferring an annuity into a trust. With proper structuring, both life insurance and annuities can serve as important, tax-efficient pillars in your long-term plan.
Intangible and digital assets
Not everything you value has a title or a certificate, and that’s okay. Digital assets, like valuable online content, domain names, social accounts, or even digital archives, can be included. In many places, intellectual property such as copyrights or royalties can also be assigned to a trust. The key is documenting them clearly. This includes listing access credentials, digital provider contacts, or ownership details, and ensuring the trustee knows how to manage and distribute them. This kind of forward-thinking becomes invaluable as families move between analog and digital worlds.
Some retirement accounts and vehicles are best left out of a trust
Not everything fits perfectly in a trust. As mentioned above, certain retirement accounts with tax-deferred status, like IRAs or 401(k)s, may be better left with direct beneficiary designations to preserve tax benefits. Vehicles can be tricky when it comes to trust planning. While it’s technically possible to title your car, truck, or SUV in the name of your trust, doing so can sometimes create headaches. This is especially true for the vehicles you drive every day. Some insurance companies may require additional paperwork or treat the trust ownership as a commercial use, which can complicate coverage.
In some states, the DMV may also have extra requirements or fees when transferring vehicle ownership to a trust. And if you lease your vehicle or have an active loan on it, you may not be able to retitle it at all. That said, collectible vehicles, recreational vehicles, or seasonal-use cars such as your classic Mustang, Airstream, or snowmobile, may make more sense to place in a trust, especially if they have substantial value or are part of your legacy assets. In those cases, a trust can help ensure the vehicle ends up with the right person without delays or confusion during probate.
It’s also worth noting that some states offer simpler alternatives to putting vehicles in a trust altogether. For example, several states allow you to add a transfer-on-death (TOD) beneficiary designation to your vehicle title. This means that when you pass away, ownership transfers directly to your chosen heir. In this scenario, probate and trusts are not required. It’s often a fast and inexpensive way to pass on your daily-use vehicle, especially if you’re looking for simplicity and minimal paperwork. Be sure to check your state’s DMV or department of revenue to see if TOD titles are available and how they align with your overall estate plan.
How to fund your trust
Drafting a trust is just the first step. The second step, funding your trust, is essential! That entails retitling assets, filing deeds, updating titles, or changing account ownership. For banks, it may require a certificate of trust. For real estate, a recorded deed. For personal property and collections, clear labeling or assignment forms. For life insurance, listing the trust as the owner or beneficiary properly. The more complete and updated the funding process, the smoother the transition when it matters most. Make sure you quiz your estate planning attorney about what steps are required to properly fund your trust. You could create the perfect trust for your estate, but if it’s funded improperly or not at all, the trust will likely fail.
Final thoughts on what kinds of property can be placed in a trust
Choosing what to put into a trust is like curating what you leave behind. A trust lets you focus on what matters most and ensures it’s protected. From real estate to symbols of your story, each asset carries weight. A well-funded trust provides privacy, continuity, and legal clarity. By thoughtfully selecting your trust property, backed by professional legal guidance and clarity, you create not just a document, but a living legacy. Your loved ones won’t just inherit assets. They’ll inherit your intention, and they’ll know you took the time and energy to craft a thoughtful trust with them in mind.
Nicole Sheehey is the Head of Legal Content at HelloPrenup, and an Illinois licensed attorney. She has a wealth of knowledge and experience when it comes to prenuptial agreements. Nicole has Juris Doctor from John Marshall Law School. She has a deep understanding of the legal and financial implications of prenuptial agreements, and enjoys writing and collaborating with other attorneys on the nuances of the law. Nicole is passionate about helping couples locate the information they need when it comes to prenuptial agreements. You can reach Nicole here: Nicole@Helloprenup.com
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