How to Fund Your Trust
A trust only controls assets that have been transferred into it. "Funding" means changing ownership of assets from your individual name to the trust's name.
Assets to Transfer
- Real Estate: Record new deed transferring property to trust
- Bank Accounts: Retitle or designate trust as POD beneficiary
- Investment Accounts: Transfer to trust ownership or TOD designation
- Business Interests: Transfer ownership to trust (check operating agreements)
- Personal Property: Assignment of property to trust
Assets NOT to Transfer
- Retirement accounts (IRAs, 401ks) - use beneficiary designations instead
- Health Savings Accounts (HSAs)
- Vehicles in some cases (check with attorney)
Common Mistakes
The biggest mistake is creating a trust but never funding it. An unfunded trust provides no benefit and forces your estate through probate anyway.