Easy Steps to Fund Your Revocable Living Trust

Creating a revocable living trust is a smart move for estate planning, but it’s only the first step. To ensure your trust serves its purpose, you need to fund it. This means transferring your assets into the trust. While this may sound complicated, it’s actually quite straightforward. Here’s a simple guide to help you through the process.

What Does it Mean to Fund a Trust?

Funding a living trust involves changing the ownership of your assets from your name to the name of your trust. By doing this, you ensure that these assets are managed according to the terms of your trust, both during your lifetime and after your death.

Step-by-Step Guide to Funding Your Trust

1. List Your Assets Start by making a comprehensive list of your assets. This should include real estate, bank accounts, investments, personal property, and any other significant items you own.
2. Real Estate
   • Deed Transfer: To transfer real estate, you need to change the property deed to reflect the living trust as the new owner. This usually involves creating a new deed and recording it with your county’s land records office. It’s a good idea to consult with an attorney to ensure this is done correctly. We recommend Book Law Firm.
3. Bank Accounts
   • Retitling Accounts: Visit your bank and ask them to change the account ownership to your trust. You’ll need to provide a copy of your certificate of trust document. Remember, banks are not allowed to demand the full version of your trust under Texas law. Each trust from Texan Wills and Trusts includes a certificate of trust which cites the law that prohibits demanding a full copy of the trust.
   • New Accounts: If you open new bank accounts, be sure to open them in the name of the trust.
   • Alternative: If you have a significant number of direct deposits and withdrawals set up, it may be less hassle to make the trust the beneficiary, rather than the owner.
4. Investment Accounts
   • Brokerage Accounts: Contact your brokerage firm and request to retitle your accounts in the name of your trust. They will provide the necessary forms and instructions.
   • Stocks and Bonds: For individual stocks and bonds, you may need to work with a transfer agent to reissue the certificates in the name of your trust.
5. Personal Property
   • Valuables: For items like jewelry, art, or collectibles, we provide a blanket assignment document to cover all your personal property.
   • Vehicles: It’s generally not necessary to put a vehicle in a Texas trust. They can be transferred using DMV forms after your death.
6. Life Insurance and Retirement Accounts
   • Beneficiary Designations: While you don’t retitle these accounts, you can name your trust as the beneficiary. This ensures that the proceeds will be managed according to your living trust’s instructions after your passing.

Benefits of Funding Your Trust

• Avoid Probate: Properly funded trusts bypass the probate process, saving your beneficiaries time and money.
• Continuity: In the event of incapacity, your trustee can manage the trust assets without court intervention.
• Privacy: Unlike wills, trusts are not public records, so your estate plan remains private.

Keep Your Trust Up to Date

As you acquire new assets, remember to fund them into your trust. Regularly review your trust and its funding to ensure everything remains up to date.

Final Thoughts

Funding a revocable living trust might seem daunting, but it’s a manageable process that provides significant benefits. By following these simple steps, you can ensure that your trust is properly funded and ready to serve its purpose. Happy planning!