The person could absolutely keep anything they wanted outside of the trust, although if they did that, then in case something happened to them it would be better if they had a will stating those assets would go to the trust.
If the person knew the assets were not going to the trust then firstly, they would just go somewhere else, and secondly, the person would end up back in probate to deal with the things they kept outside the trust. The trust would deal with the trust assets but anything that was not in the trust would have to go through probate and the person would end up back in probate court.
Are People Generally Afraid To Lose Control Of Their Assets If They Put Them In A Trust?
The person would never lose control of their assets, especially with a revocable trust or what is generally called a living trust, although the technical term is revocable trust. Someone with a revocable trust would be able to control it, put it in, take it out and do anything they wanted with it and nobody would be able to stop them from doing that.
People are generally more concerned if they have an irrevocable trust because it would be like giving up the assets, but then the word irrevocable means they would not be able to have it back. Technically, that may be the case, but it would be drafted in such a way that the person would only be giving up control to maybe one thing in regards to giving up control.
Let us suppose someone put a million dollars into an irrevocable trust and were then told they could never have the million dollars again. In this case, they would have given up control, and this scares people because they think of it like they worked all their life to get a million dollars and then they were made to sign these documents or that the attorney asked them to sign these documents which stated they could never have it back.
Let us suppose the person had a wife, and the person themselves was also the trustee so they were actually in charge of everything. The only thing the person would not be able to do is to give themselves the money, although they would be able to give it to their wife.
If the person needed the money, they would be able to give it to their wife. The trust does not say the money could not be given to her, it only states that it could not be given back to the person themselves.
This was just an example, but it would be easier in actual application. The point is that the trust would be drafted in such a way and it would be defined with everyone’s individual situation to show them how on one hand they were technically giving up control, but if they wanted it back or if they needed it back, there would be ways to get it back.
For more information on Whether All Assets Need To Be Put In Trust, an initial consultation is your next best step. Get the information and legal answers you’re seeking by calling (770) 933-9009 today.