How to Fund a Revocable Living Trust?

To raise money for a revocable living trust means to make sure that the assets planned to be kept in the trust are officially defined as trust assets. In addition, it means to make sure the trust is going to work as intended by eliminating any legal obstacles as well as possible conflicts. Usually, this requires making the living trust the named beneficiary to life insurance, retirement accounts, investment and some other assets meant to be managed by the living trust. Carrying this out will certainly save the trustee significant amount of time and money in executing the terms in the trust.
 

How Do You Fund a Revocable Living Trust?


Retitle Assets


Alter the title language of bank accounts, bonds, real estate, vehicles and various other titled assets to indicate ownership by the trustee stated in the trust. Add the name and date in the trust to prevent confusion.
 

Update Beneficiaries


Make sure to update the named beneficiaries of payable-on-death bank accounts, retirement accounts and life insurance policies to add either the intended or the trust beneficiary of the assets via operation of the trust. Check with an attorney or estate planner to make sure you have named the right beneficiary as intended.
 

Assign Ownership of Your Personal Property


Your personal property and some other assets that do not have an official title may be assigned to the trust via language clearly mentioning ownership by the living trust. You need to have a copy of the assignment attached together with the trust document, plus a copy needs to be given to any party having ownership or control over the property.
 

Open a Trust Bank Account


If the living trust is to manage cash or cash equivalents, a different trust account must be set up solely for trust assets. Many banks and brokerages give green light for trust fund creation provided that the trust document are presented.

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