Funding your Trust (transferring your assets into the name of your Trust) is the MOST IMPORTANT PART of having a Trust. Your Trust must be funded with assets in order for it to operate properly. Schedule A (included in your Trust documents) is used to help you create an inventory of assets to be included in your Trust. Listing your assets in Schedule A is not enough! In order to avoid probate, you must contact each financial institution individually and follow the instructions we provide to move your assets into the name of your Trust. Each type of asset requires a different process so please follow the instructions carefully.
What assets need to go into my Trust:
1 - Real Estate
2 - Bank or Credit Union Accounts
3 - Life Insurance
4 - Brokerage Accounts
5 - Retirement Accounts
6 - Personal Property and Business Interests or Partnerships
What do I do with Assets I already own:
All of the assets you currently own need to be transferred into the name of the Trust, or the Trust needs to be listed as the beneficiary.
In the "Schedule A" section of your binder, we have provided sample letters for you to use to transfer your assets. Go to this section of your binder and follow the instructions carefully to make sure each asset is properly transferred or the Trust is named as the beneficiary. Many companies/banks may require you to use their own forms.
What do I do when I purchase a new asset:
Once you have created your Trust, all newly acquired assets need to be either owned by the Trust or the Trust needs to be named as the beneficiary. (additional details provided in the following sections)
Does my personal property need to be put into the Trust:
Keep in mind when you acquire tangible, personal property (car, recreational vehicles, artwork, collectibles, etc.) they do not need to be purchased in the name of the Trust. The Assignment of Personal Property (included in your Trust documents) accounts for this type of property.
REMEMBER ANY ASSETS LEFT OUT OF THE TRUST MAY BE SUBJECT TO PROBATE!
Real Estate:
Transferring property into the name of your Trust is one of the most, no – it is THE most important step in funding your Trust. If it is not recorded correctly, your property may be subject to probate – and let’s be honest - that is what we are trying to avoid!
Transferring existing property into the Trust:
A deed must be prepared to transfer the ownership of your property into your Trust. We can prepare your deed for $200 per deed, or you can contact a local title company to do it for you. Prices vary across the country, but deed preparation typically ranges from $50-$750. Our deeds are accepted in every state and we include instructions indicating your county recording fees and recording/mailing instructions. PLEASE NOTE: It is very important that a deed is properly recorded or it will be subject to probate!
You have a title to your property (the title states ownership) and you (may) have a mortgage on your property (the mortgage is your loan). They are completely separate from each other. When transferring existing property or purchasing a new property, only the title needs to be in the name of the Trust. It should look like this:
HUSBAND NAME and WIFE NAME, as co-Trustees of TRUST NAME, dated TRUST DATE (your Trust date is the day that your Trust was signed and notarized)
Purchasing new real estate:
You have a title to your property (the title states ownership) and you (may) have a mortgage on your property (the mortgage is your loan). They are completely separate from each other. When purchasing a new property, only the title needs to be in the name of the Trust. It should look like this:
HUSBAND NAME and WIFE NAME, as co-Trustees of TRUST NAME
Refinancing property:
Depending on your mortgage lender, you may be able to do this the "really easy" way or the "somewhat easy" way.
• REALLY EASY – Some lenders simply need proof of your Trust to complete your refinance. If that is the case, the Certification of Trust (found in your binder) has everything they need. Send in a copy and you are good to go.
• SOMEWHAT EASY – Some lenders require you to transfer the title of your property back into your individual name(s) PRIOR to refinancing your home (because some mortgage companies are particular and like to loan money to individuals, NOT Trusts.) Once the refinance is complete, you then need to transfer the title back into the Trust. Make it easy and give us a call. We will prepare the deeds to make the transfer “out of” and “back into” the Trust for a small fee.
Bank Or Credit Union Accounts (Checking, Savings, etc.)
You have two options when transferring a bank account or credit union account into your Trust:
Option 1:
Contact your bank or credit union and ask for a “Change of Beneficiary” form. Change the PRIMARY beneficiary to the Trust. You will not need CONTINGENT beneficiaries because the Trust has that under control. It should look like this:
Primary Beneficiary: TRUST NAME
Most financial institutions will ask for the following:
• Name of the Trust
• Date of the Trust (date you signed and notarized it)
• Trustee (that’s you and/or your spouse)
Some financial institutions ask for a Tax ID number. That is your social security number. If your financial institution asks for a copy of the Trust, you can send in the “Certification of Trust” document (included in your Trust documents) – it has everything they need.
Option 2:
Contact your bank or credit union and request a “Change of Ownership” form. Instruct them to make your Trust the OWNER of the account. It should look like this:
Owner: HUSBAND NAME and WIFE NAME, as co-Trustees of TRUST NAME
Most financial institutions will ask for the following:
• Name of the Trust
• Date of the Trust (date you signed and notarized it)
• Trustee (that’s you and/or your spouse)
Some financial institutions ask for a Tax ID number. That is your social security number. If your financial institution asks for a copy of the Trust, you can send in the “Certification of Trust” document (included in your Trust documents) – it has everything they need.
Life Insurance Policies
How do I transfer Life Insurance Policies into the Trust:
Contact your life insurance agent or life insurance company and ask for a “Change of Beneficiary” form. Change the PRIMARY beneficiary to the Trust. You will not need CONTINGENT beneficiaries because the Trust has that under control. It should look like this:
Primary Beneficiary: TRUST NAME
Most companies will ask for the following:
• Name of the Trust
• Date of the Trust (date you signed and notarized it)
• Trustee (that’s you and/or your spouse)
Some companies ask for a Tax ID number. That is your social security number. If your insurance company asks for a copy of the Trust, you can send in the “Certification of Trust” document (included in your Trust documents) – it has everything they need.
Brokerage Accounts (Dividend Reinvestment Accounts, Stock Certificates, Securities etc.)
How do I transfer my Brokerage Accounts into the Trust:
Contact your broker or investment firm and request a “Change of Ownership” from. Instruct them to make your Trust the OWNER of the account. If you have actual stock certificates, request that the stock be re-issued in the name of your Trust. It should look like this:
Owner: HUSBAND NAME and WIFE NAME, as co-Trustees of TRUST NAME
Most firms will ask for the following:
• Name of the Trust
• Date of the Trust (date you signed and notarized it)
• Trustee (that’s you and/or your spouse)
Some firms ask for a Tax ID number. That is your social security number. If your investment firm asks for a copy of the Trust, you can send in the “Certification of Trust” document (included in your Trust documents) – it has everything they need.
Retirement Accounts
(Pensions, Annuities, IRA (Roth), 401K, 457, ESOPS, SEP, etc.)
How do I transfer my Retirement Accounts into the Trust:
Please consult your tax advisor before making any changes. Typically, you will contact these financial firms and ask for a “Change of Beneficiary” form. For tax purposes, it is important to keep your spouse as the PRIMARY beneficiary on these accounts. Change the CONTINGENT beneficiary to the Trust. It should look like this:
Contingent Beneficiary: TRUST NAME
Most firms will ask for the following:
• Name of the Trust
• Date of the Trust (date you signed and notarized it)
• Trustee (that’s you and/or your spouse)
Some firms ask for a Tax ID number. That is your social security number. If your investment firm asks for a copy of the Trust, you can send in the “Certification of Trust” document (included in your Trust documents) – it has everything they need.
Business Interests
(business interests, partnership interests, contracts, notes, receivables, etc.)
How do I transfer my Business Interests into the Trust:
Complete an Assignment transferring all interests from your name to the name of your Trust. Due to its importance, we strongly recommend contacting Easy Legal Planning for assistance with business interest transfers.
Keep all business assignments in the back of Schedule A in your binder.