March 12, 2024
Creating a revocable living trust is only half the job. The other half—funding the trust—is what actually delivers probate avoidance, privacy, and smooth successor trustee management. Funding means retitling assets into the trust or, where appropriate, using beneficiary designations so assets flow to the trust at the right time. Below is a step‑by‑step, U.S.‑only guide to getting this right the first time.
Trust documents. Keep the signed trust and a short certificate of trust handy. The certificate lets banks and title companies verify trustee authority without seeing private terms.
Asset list. Create a worksheet listing each asset (real estate, bank, brokerage, retirement accounts, life insurance, business interests, vehicles, valuable personal property). Include account numbers and current titling.
Contact info. Note the phone numbers for your bank’s trust department, your brokerage, your mortgage servicer, and your county recorder’s office.
Your successor trustee will rely on this file one day. Build it now; thank yourself later.
What to do: Prepare and record a deed transferring the property from you (as an individual) to you as trustee of your revocable trust (e.g., “Jane Doe, Trustee of the Jane Doe Revocable Living Trust dated [date]”). Use the deed type customary in your state (warranty/grant/quitclaim). Record with the county where the property sits and pay any nominal recording fees.
Mortgage? Transferring to your revocable trust typically does not trigger a due‑on‑sale clause; you’re not changing beneficial ownership. Inform your lender if requested.
Insurance and taxes: Notify your homeowner’s insurer so coverage reflects the trust. In many states, homestead and property‑tax classifications remain intact if you still occupy the home. Ask your county if a supplemental form is required.
Out‑of‑state property: Funding into your trust is especially valuable here—it helps avoid ancillary probate in multiple states.
Keep: A stamped copy of the recorded deed and any county transfer forms in your funding file.
What to do: Ask your brokerage to convert your individual account to a trust account or open a new trust account and transfer assets. Provide the exact trust name and date, your trustee name(s), and the certificate of trust. After conversion, new statements will show the trust as the owner.
Why it matters: Your successor trustee can manage investments immediately if you’re incapacitated, and—later—trust assets can be distributed without probate.
Tip: Confirm that your cost basis history carries over and that any dividend reinvestment settings stay as you expect.
Two workable options:
Retitle checking/savings to the trust. Banks will want your certificate of trust. This gives the successor trustee immediate access to pay bills.
Keep accounts in your name but add payable‑on‑death (POD) designations to the trust. This keeps daily use simple but still routes funds to the trust at death.
Either can be fine. If you keep POD, make sure the account’s online settings show the POD is active and correct. If you retitle, order new checks so vendors see the trust name.
Sign a short assignment of personal property transferring household goods, furniture, art, jewelry, and collectibles into the trust. For high‑value items (e.g., a classic car title, rare instruments), keep separate bills of sale or appraisals with serial numbers or identifying marks. The assignment covers broad categories; the additional documentation proves what you owned and helps with insurance.
Some assets should not be retitled during life but do require beneficiary updates:
Retirement accounts (401(k), IRA). Keep ownership in your individual name to preserve tax treatment. Update beneficiary designations. Many families name individuals; sometimes you’ll name the trust (e.g., for minors or spendthrift protections).
Life insurance. You can designate the trust as beneficiary to route a large death benefit through one set of distribution rules, particularly if your trust includes minors’ or spendthrift provisions.
Transfer‑on‑death (TOD) brokerage and POD bank accounts. Align these with your trust plan; use them to mop up small accounts you don’t want to retitle.
Avoid conflicts: If your trust says “distribute 60/40 among children,” don’t leave a large policy naming only one child outright unless that’s deliberate.
LLCs/partnerships. Most LLC operating agreements permit transfers to a revocable trust, but they may require member consent or specific notices. Assign your membership interest to yourself as trustee and have the company ledger reflect the trust as owner.
S‑corps. Shares can generally be owned by a grantor trust, but get tax advice if you have a corporation—S‑status has eligibility rules.
Buy‑sell agreements. Align your trust with any buy‑sell terms: right of first refusal, valuation method, funding (e.g., insurance).
Some states make vehicle retitling cumbersome; others offer TOD titles. If retitling is impractical, plan to capture vehicles via your pour‑over will or a state small‑estate procedure. If a vehicle is unusually valuable (collector car), consider titling to the trust and updating insurance to match.
Your trustee’s first questions will be “What do I own, where is it, and what authority proves I can act?” Help them by maintaining:
A funding checklist with columns for “Requested,” “Confirmed,” and “Documents Filed.”
Copies of deeds with recorder stamps, brokerage confirmation letters, bank retitling letters, beneficiary forms, and the assignment of personal property.
Your certificate of trust (several originals if your state requires “wet ink”).
Plan a 60–90 day sprint after signing the trust:
Week 1–2: Deed drafting, bank/brokerage calls, gather forms.
Week 3–6: Record deeds; complete brokerage conversions; sign assignment of personal property; submit beneficiary forms.
Week 7–10: Confirm each institution’s completion in writing.
Week 11–12: Update your funding checklist and store all confirmations in the binder.
Half‑funded trust. You moved the house but forgot the brokerage. Fix: Finish conversions; update your checklist.
Wrong naming conventions. Inconsistent trust names or dates on forms cause delays. Fix: Copy‑paste the exact trust caption everywhere.
Insurance gaps. You retitled the house but didn’t update the insurer. Fix: Call your carrier; send the certificate of trust.
Mismatched beneficiaries. Your will/trust say one thing; your life insurance says another. Fix: File new forms the same day you sign your estate documents.
Even with perfect funding, your pour‑over will serves as a backstop for stray assets (a newly opened bank account, an uncashed refund). It directs them into the trust and appoints an executor to handle anything that still requires court authority (sometimes a small‑estate affidavit suffices).
Joint trust: Retitle shared assets directly into the joint trust. Keep retirement accounts in each spouse’s name and coordinate primary/contingent beneficiaries.
Separate trusts: When keeping property lines distinct (blended families, separate property), title each asset to the correct trust and document the source of funds.
Every time you buy a property, open a significant account, or change institutions, ask one question: “Should this be titled to the trust?” If you move across state lines, review deeds and local recording conventions, then update your healthcare documents and powers of attorney as well.
A funded revocable living trust gives your successor trustee immediate authority, spares your family months of waiting for court permissions, and keeps the details of your assets and distributions private. The administrative cost is front‑loaded (phones, forms, deeds); the dividend is time, privacy, and control when your family needs it most.
Build and fund your trust with a guided workflow: Online Revocable Living Trust → /product/online-living-trust/
Want templates and checklists? Living Trust Kit → /product/living-trust-kit/
Add a pour‑over safety net: Online Last Will & Testament → /product/online-last-will/
Diana is a freelance writer that has written extensively in the areas of finance, financial planning and estate planning.
Freelance Writer
Diana is a freelance writer that has written extensively in the areas of finance, financial planning and estate planning.
