The right to receive money, evidenced by documents such as a Promissory Note, is an asset that must be transferred into the trust This is the document which you will be preparing to avoid estate taxes and probate. It has possession of your property, and a system for caring for the property, both before and after your death., just like every other asset. Promissory notes and accounts receivable indicate that you are owed money, but there is no security guaranteeing repayment. You create these rights when you loan money to your children, friends or other business associates. All documents that indicate that you are owed money should be transferred into the trust. If you do not transfer these rights they will have to be probated like any other asset that is not transferred to the trust.
If your promissory not is secured by other property Property is defined in three ways: 1) real property, which is the land and buildings located on the land; 2) personal property, which is the property you have in your house such as the couches, beds, furniture and other items that you can see and touch; 3) intangible property, which is the property which cannot be see or held. This property is the stocks and bonds that you own, bank accounts, and insurance coverage. such a personal property and was filed with a UCC Uniform Commercial Code Financing Statement, a Change to UCC (Uniform Commercial Code) will need to be filed in the Name of the Trust.
All other promissory notes and receivables should be transferred to the trust by creating an assignment of Promissory Note/ Receivable assigning it from the grantor This is the person that puts his/her property into the trust to avoid estate taxes and probate. to the trust signed and notarized if necessary.