If you create a living trust but don’t transfer your assets into it, those assets won’t avoid probate. They’ll still be subject to the lengthy and potentially costly probate process, which defeats one of the main purposes of setting up a trust. In addition, failing to fund your trust can lead to confusion for your loved ones and make it harder for them to manage your estate after you’re gone.

Real estate, such as your home or other properties, needs to be transferred into the trust through a new deed. This typically involves a quitclaim or warranty deed, depending on your circumstances. Ensuring this deed is properly prepared and recorded is crucial to avoid title issues down the road. Bank accounts, including checking, savings, and money market accounts, should also be retitled in the trust’s name. Alternatively, you can designate the trust as the payable-on-death beneficiary, which simplifies access to funds after your passing.

Investment accounts, such as stocks, bonds, or brokerage accounts, also need to reflect the trust’s ownership. This often requires submitting specific forms to financial institutions, so working with a financial advisor or attorney can help ensure a smooth transition. Retirement accounts like IRAs or 401(k)s generally cannot be owned by a trust during your lifetime, but you can name the trust as a beneficiary to ensure these funds are distributed according to your wishes.

Life insurance policies should be updated to name the trust as the primary or secondary beneficiary, ensuring the proceeds are directed according to the terms of the trust. Business interests, such as ownership stakes in an LLC or corporation, can also be transferred to a trust, though this may involve amending operating agreements or other legal documents.

Personal property, including valuable items like jewelry, artwork, or collectibles, can be listed on a separate document as part of your trust. Vehicles, boats, and other titled assets can also be retitled in the trust’s name, depending on state laws. Digital assets, like cryptocurrency or online accounts, should not be overlooked and may require special instructions for access and transfer.

A law firm like Regal Estate Planning specializes in estate planning and will guide you through every step of funding your trust. Attorneys ensure deeds are correctly prepared and recorded, financial institutions receive proper documentation, and all your assets are accounted for. They’ll also follow up to confirm that everything has been transferred correctly and keep records for future reference. By fully funding your trust, you protect your family from unnecessary legal hurdles and honor your intentions. Taking this step now saves time, money, and stress for your loved ones later. When done right, a living trust becomes a powerful tool to ensure your legacy is managed exactly as you wish.

Call us today to get started!