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Quick Guide to Funding Your Trust
Now that you have established your Living Trust, it is important that your assets are retitled or beneficiary designations are aligned with your estate planning goals. Use this guide as a quick reference for determining what assets require action on your part to ensure they can be managed by your Trust.
REAL PROPERTY (House, Land, Vacation Rentals, Etc.) Failing to effectively transfer real property interests into your Trust will trigger probate in every state you own property.
Do Transfer Into Trust
Real Property
| Property Type | Recommended Ownership | How to Transfer |
|---|
| House / Land | Trust | Have deeds prepared and recorded in the county where the property is located. If receiving a senior property tax exemption, special trust forms may be required. |
| Vacation Property | Trust | Deed into the Trust. Coordinate recording with the relevant county/agency. |
| Oil, Gas, Mineral Rights | Trust | Assign or deed interests to the Trust in the jurisdiction where the rights are recorded. |
Remember to title any new property purchased or refinanced in the name of your Trust!
Time Shares
The process to transfer your timeshare will depend on how your interest is vested. | Time Share Type | Recommended Ownership | How to Transfer |
|---|
| Deeded | Trust | Provide our office with a copy of the deed and we will generate a quote for the cost of preparing and recording the deed. |
| Contract / Points / Membership | Trust | We will prepare a letter requesting the transfer / assignment of your interest. This should be sent to the time share company. |
Business Interests
| Business Type | Recommended Ownership | How to Transfer |
|---|
| LLCs | Trust | Assignment of LLC interest to the Trust. |
| Partnerships | Trust | Assignment of partnership interest to Trust. |
| Corporations | Trust | Transfer shares to Trust; have the corporation reissue certificates in the Trust’s name. |
| Sole Proprietorship | Self | No change recommended. |
Bank Accounts
| Account Type | Recommended Ownership | How to Transfer |
|---|
| Checking / Savings / Money Market / CDs | Trust | Take Estate Planning Portfolio (binder) to your bank or provide them with electronic copies of your documents. Most banks will be satisfied with a copy of the Certificate of Trust, though some may still request the entire Trust document. The bank should not retain the original documents, only copies. |
| Safe Deposit Box | Beneficiary | Safe Deposit Boxes should name those authorized to access the box after your incapacity or death. Usually these are the same as your Trustees. |
Stocks (Certificates or Book‑Entry Shares)
| Stock Type | Recommended Ownership | How to Transfer |
|---|
| Stock held either with certificates or as book entry shares – not held by a brokerage firm | Trust | Contact the issuer’s Transfer Agent for change‑of‑ownership forms (e.g., AST, BNY Mellon). A Medallion Signature Guarantee may be required. |
Brokerage (Non‑Qualified)
These are not retirement accounts. Non-qualified plans use after-tax dollars to fund them. | Account Type | Recommended Ownership | How to Transfer |
|---|
| Brokerage / Mutual Funds / Dividend Reinvestment | Trust | Contact your financial planner or brokerage firm. Request a change of ownership form. Once the form is completed, the underlying assets in the brokerage account will be held in the name of the Trust. |
| 529 College Savings Plan | Self | A 529 College Savings Plan can be owned by anyone, including in some cases your Trust. However, it is not necessary to transfer this to your Trust, just ensure the beneficiary remains up to date. |
Savings Bonds
| Bond Type | Recommended Ownership | How to Transfer |
|---|
| Paper Bonds | Trust | Visit www.treasurydirect.gov and establish a new account for the Trust. Search for form FS Form 4000, complete the form and mail it with the unsigned bonds to Treasury. Treasury may first request that you open a personal account before transferring them to the Trust. |
| Digital Bonds | Trust | Visit www.treasurydirect.gov and establish a new account for the Trust. Under the Manage Securities tab, go to Transfer Securities and input the Trust account info. |
Promissory Notes / Reimbursement Contracts
| Loan Type | Recommended Ownership | How to Transfer |
|---|
| Promissory Notes (Secured/Unsecured) | Trust | The note and Deed of Trust (if secured) should be assigned to your Trust. Recording fees will apply to recording a Deed of Trust. |
Guide to Insurance
| Policy Type | Recommended Ownership | Action to Take |
|---|
| Life – Whole/Universal | Trust / Self | Both the owner and beneficiary can be changed to your Trust, but the beneficiary should be the Trust. Request the appropriate form(s) from your insurer. |
| Life – Term | Self | In most cases, only the beneficiary designations need to be updated. Primary Beneficiary: Spouse (if applicable); Contingent Beneficiary: Trust. |
| Annuity (Non‑Qualified) | Trust | Both the owner and beneficiary can be changed to your Trust, but the beneficiary should be the Trust. The measuring life should remain the same. Request the appropriate form(s) from your insurer. |
| Property – Home & Property – Vacation / Rental | Self | The homeowner’s policy will stay in your name. Add the Trust to the policy as an “Additional Insured.” |
| Property – Business | Business | Business property should list the business as the primary holder of the insurance policy. |
| Umbrella | Self | Add the Trust as an “Additional Insured.” |
| Vehicle | Self | In most cases, no changes need be made. |
Do Not Transfer Into Your Trust
Qualified & Retirement Accounts
Do Not change the ownership of qualified retirement accounts. Do update the beneficiary designations on these accounts. Qualified plans have tax-deferred contributions and attempting to change the owner may cause this to be considered a complete withdrawal.
| Account Type | Ownership | How to Transfer |
|---|
| IRAs (Traditional, Roth, SEP, etc.) & ERISA Plans (401k, 457, 403b, TIAA, TSP, Deferred Comp, etc.) | Self | Contact the plan administrator or custodian to request a change in beneficiary. In most cased the beneficiary should be as follows: Primary Beneficiary: Spouse (if applicable) Contingent Beneficiary: Trust Under no circumstances should your estate be named as the beneficiary or contingent beneficiary. For beneficiaries that have special needs, please discuss this with your signing paralegal |
| Pension Plans / PERS | Self | Only amounts that would be distributable in a lump sum at death need to have a beneficiary named. If there is no remaining death benefit, there is nothing to do here. If there is a remainder benefit, it should be treated as an IRA above. |
| HSA | Self | Only a spouse can inherit a HSA. If you name anyone else, the account will cease as an HSA and income tax will be paid on the entire balance. |
Digital & Crypto Currency
Digital Currency such as BitCoin and other digital assets like NFTs and Smart Contracts are not “titled” like traditional assets. Whomever has the access has the asset, so it is important to document how to access these assets for your successors. | Digital Currency Type | Steps to Take |
|---|
| Hot Storage | Holding assets in an online account is convenient for frequent transactions but less secure. If you store assets here, leave access instructions and consider adding two-factor authentication that your Trustee can easily disable if needed. |
| Cold Storage | Ensure your Trustee knows where to find and how to access the “keys” to your digital assets. Consider using a storage device. |
Vehicles
| Vehicle Type | Recommended Ownership | Steps |
|---|
| Cars/Trucks/SUVs/Motorcycles/Boats & Watercraft | Self | Washington and Idaho do not require title to be transferred to your Trust to avoid Probate. Vehicles will be considered Trust property on death and your Trustee will be able to transfer them using an affidavit. |
| ATV / Four‑wheelers & Farm Equipment | Self or Company | Unless it has a title, this will be considered personal property. If it does have a title, if the vehicle is used in a business, it should be titled to that business. Otherwise, it should be treated like a normal vehicle. |
| Exceptions | Trust | Please contact us about large motor coaches, RVs, collector vehicles worth more than $100,000, airplanes, etc. |
Personal Property
| Asset | Recommended Ownership | Steps to Take |
|---|
| Firearms / Guns | Self | State and federal law may apply to the transfer of firearms at death. You should name someone familiar with firearms and their transfer rules to take charge of the firearms at death. In the meantime, you should ensure their continued safe storage. |
| Precious Metals / Coins | Self | Unless your metals are held in an account with a custodian, metals and coins will be treated as personal property. Document their location and ensure their safe storage. |
| Art / Collectibles | Self | Unless you have art with significant value in excess of $100,000, it does not need to be transferred to your Trust. Ensure your Trustee has access to necessary information on provenance. |
| Intellectual Property | Self / Trust | IP that is subject to a licensing agreement should be assigned to your Trust specifically, Royalties will also be specifically assigned to your Trust. However, a general assignment of your personal property includes your intellectual property. |
| Online Accounts (e.g., Facebook, Google, Amazon Kindle) | Self | Online accounts may store vast amounts of valuable data, including digital assets, photos, emails, video, etc. Generally, the Terms of Service for these providers do not allow them to be assigned to a Trust. You should investigate whether they offer a “legacy contact” and complete the necessary designations to ensure it can be handed over, if possible. |
| Devices (computers, tablets, phones) | Self | Devices such as computers, tablets, cell phones, etc. can become worthless without a password. Ensure you have documented your device passwords in a safe location for your Trustee. |
