Funding your trust is an essential step in making your estate plan effective. Here are some common steps to help you get started with transferring assets into your trust. This process ensures that your trust can manage and distribute your assets according to your wishes. Please note, your My Files section of your account includes "Trust Funding Instructions" as well.
1. Understand the Basics of Trust Funding
Funding a trust means transferring ownership of your assets into the trust’s name.
Common assets to transfer include real estate, bank accounts, investment accounts, and personal property.
2. Gather Important Documents
Locate your trust document, often called a “Trust Agreement” and your "Certificate of Trust."
You’ll typically need to provide proof of ownership for each asset you plan to transfer (e.g., deeds, account statements).
3. Retitle Real Estate
Work with your local county clerk's office to update the title of your property to reflect the trust as the new owner.
This may involve filing a new deed, such as a quitclaim deed or warranty deed, naming the trust as the property owner.
Ensure the language matches the trust exactly (e.g., “John Doe, Trustee of the Doe Family Trust”).
4. Transfer Bank and Investment Accounts
Contact your bank or financial institution to update the ownership of your accounts to the trust.
This typically involves completing forms provided by the institution, along with providing a copy of your trust document.
For investment accounts, verify if retitling the account is appropriate or if you should list the trust as a beneficiary.
5. Update Beneficiary Designations
For accounts that cannot be transferred (e.g., retirement accounts like IRAs or 401(k)s), consider updating the beneficiary designations to name your trust.
Consult with a financial advisor to ensure the change aligns with your estate planning goals.
6. Transfer Titles for Other Assets
For vehicles, boats, or other titled property, check with your local DMV or equivalent agency to update ownership.
Some states have specific requirements for transferring vehicles into a trust.
7. Include Personal Property
Personal items like jewelry, art, or furniture can be added to your trust using the assignment of personal property document located in your My Files section of your account.
This document is a simple way to declare ownership of non-titled property in the trust.
8. Review Your Trust with a Professional
Consider consulting an estate planning attorney or financial advisor to ensure all assets are properly funded.
They can help you avoid errors, such as missing assets or incorrect titling.
9. Keep Records
Maintain a record of all assets transferred to your trust.
This list will help your trustee manage the trust effectively and ensure no assets are overlooked.
By funding your trust, you’re taking a crucial step in ensuring your estate plan works as intended. If you have questions or need assistance, consider reaching out to a licensed estate planning professional for personalized advice.