November 28, 2023
A revocable living trust only delivers its top benefits—avoid probate, maintain privacy, and provide incapacity continuity—if you fund it. Funding is the unglamorous step of retitling assets or aligning beneficiary designations so property lands in the trust when it should. This blueprint shows what assets typically go into a living trust, what you usually leave out, and a step‑by‑step workflow a lawyer would hand to a client.
Record a deed to trust in the property’s county showing the trustee as owner (e.g., “Alex Green, Trustee of the Alex Green Revocable Living Trust dated…”). Notify your insurer and mortgage servicer. In many states, homestead and property‑tax classifications remain intact for an owner‑occupied home in a revocable trust. For out‑of‑state property, trust titling helps avoid ancillary probate.
Convert individual or joint brokerage accounts to a trust account or open a new trust account and transfer positions. Provide a certificate of trust to the brokerage. This is essential for smooth successor trustee management and probate avoidance.
You can retitle checking/savings to the trust or keep them in your name and add payable‑on‑death (POD) designations to the trust. Retitling provides immediate trustee access during incapacity. POD can be simpler for day‑to‑day use but doesn’t help with incapacity.
Use an assignment of personal property to move furniture, artwork, jewelry, and collections into the trust. For unique items, keep appraisals and identifying details (serial numbers) with the assignment.
Most LLC and partnership interests can be assigned to your trust, subject to operating‑agreement consent rules. Update the company ledger. For closely held corporations, get counsel—S‑corp shares can be owned by a grantor trust, but confirm eligibility.
Keep ownership in your individual name to preserve tax treatment. Coordinate with beneficiary designations: you may name individuals (often simplest) or your trust (e.g., for minor or spendthrift beneficiaries). Choose deliberately; your will/trust cannot override the beneficiary form.
HSAs and FSAs stay in your name. 529 plans usually remain with the account owner; check successor owner options rather than retitling to the trust.
States differ. If your state offers TOD titles, use them. Otherwise, many clients leave ordinary vehicles outside the trust and rely on a pour‑over will or small‑estate procedure. Exception: a valuable collector car may be titled to the trust with matching insurance.
Equity grants and deferred‑comp plans are governed by plan documents; ownership is rarely transferable. Align beneficiary or pay‑on‑death settings where the plan allows.
TOD (transfer‑on‑death) for brokerage accounts and POD for bank accounts can route assets directly to your trust at death if you don’t want to retitle today.
Life insurance can name the trust as beneficiary to feed a central distribution plan (useful when your trust includes minors’ or spendthrift protections).
Retirement accounts should be coordinated with tax and family goals. If your trust contains complex sub‑trusts for minors or blended‑family needs, naming the trust as beneficiary may make sense; otherwise, naming individuals is common.
Rule of thumb: Whatever you don’t retitle now, make sure it lands in the right place later by using TOD/POD or beneficiary forms consistent with your trust design.
Inventory everything. Create a table listing accounts, titling, and whether a designation exists.
Deed real estate. Prepare and record deeds for each property; file any county forms and keep stamped copies.
Convert brokerage accounts. Provide the certificate of trust; confirm basis histories and dividend settings carry over.
Decide bank strategy. Retitle accounts for incapacity access or add POD to trust for simplicity.
Execute the assignment of personal property. Attach any appraisals or itemized lists for valuables.
Update beneficiaries. Retirement accounts and insurance on the same day you sign your trust.
Document everything. Keep confirmation letters, statements, and recorded deeds in your trust binder.
Tell your successor trustee where the binder and certificate of trust are stored.
Joint trust: Title shared assets directly into the joint trust. Keep retirement accounts in each spouse’s name; coordinate primary/contingent beneficiaries.
Separate trusts: When you need clear lines (blended families, separate property), title assets to the correct trust and document sources of funds.
Using the wrong trust name/date. Copy the caption from the trust agreement exactly on every form and deed.
Forgetting to notify insurers and lenders. Call the homeowner’s insurer and mortgage servicer after recording the deed; provide the certificate of trust.
Neglecting beneficiary designations. A trust won’t override your 401(k) or life insurance form. Update them explicitly.
Assuming POD/TOD helps with incapacity. Those designations only transfer at death; they don’t empower your trustee during incapacity. Retitle key operating accounts if you want continuity.
Whenever you open a new account, change brokers, refinance, or buy property, ask: “Should this be in the trust?” If you move to another state, review deed formats and update your powers of attorney and healthcare directives to the new state’s forms.
A fully funded revocable living trust is the difference between a plan that’s elegant on paper and one that works in real life. Your successor trustee can act on day one without court supervision, you keep distributions private, and your family avoids avoidable detours.
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Founded by lawyers in 2000, EstateBee is a leading international estate planning and asset protection publisher.
Hive Administrator
Founded by lawyers in 2000, EstateBee is a leading international estate planning and asset protection publisher.
