⚖️ What Does It Mean to “Fund” a Trust?

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To fund a trust is to retitle assets from your individual name into the name of your revocable living trust.

• Before funding: Owner = You
• After funding: Owner = Your Trust (with you still fully in control)

You can still buy, sell, refinance, or change your mind. Your day-to-day control doesn’t change. But from a legal standpoint, the trust becomes the owner so:

• Your successor trustee can step in if you’re incapacitated
• Assets avoid probate at your death
• Your instructions in the trust actually take effect

Think of your trust as a container. Funding is the process of putting things into that container so it can protect and distribute them.

⚖️ Six Major Asset Categories That Typically Belong in Your Trust

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1️⃣ Real Estate (Homes, Rentals, Land, Vacation Property)

Real estate is often the most important asset to place into your trust—and one of the most commonly overlooked.

• Primary residence
• Rental or investment properties
• Vacation homes or cabins
• Family land or inherited property

Your attorney will typically prepare and record a new deed transferring ownership from your name to the name of your trust.

2️⃣ Bank Accounts (Checking, Savings, CDs, Money Market)

Bank accounts are often retitled into the trust unless you intentionally rely on “Payable on Death” (POD) or “Transfer on Death” (TOD) designations instead.

• Avoids account freezes if you’re incapacitated.
• Prevents probate delays for cash your family may need quickly.
• Gives your successor trustee access to pay bills and expenses

3️⃣ Non-Retirement Investment Accounts

Brokerage accounts, mutual funds, ETFs, and individual stocks can usually be transferred into your trust without triggering tax consequences.

• Keeps your investments managed on your terms during life
• Ensures your successor trustee can step in smoothly
• Avoids probate for significant financial assets

4️⃣ Life Insurance (Beneficiary → Your Trust)

Most people do not retitle life insurance policies into the trust. Instead, your attorney may recommend naming the trust as a beneficiary—especially if you have minor children or want structured distributions.

• Allows the trustee to manage and distribute proceeds according to your plan
• Helps protect young or vulnerable beneficiaries from receiving a lump sum outright

5️⃣ Business Interests

If you own a small business, LLC units, or partnership interests, those interests can often be assigned or transferred into your trust so there is a plan for continuity if something happens to you.

Your attorney will review operating agreements to confirm what’s allowed and how to document the transfer correctly.

6️⃣ High-Value Personal Property

Some items don’t have a title or deed, but you may still want them clearly included in your plan—especially high-value or sentimental pieces.

• Jewelry
• Collectibles or art
• Firearms (where allowed by law)
• Family heirlooms

These items are often transferred by signing an Assignment of Personal Property and keeping a simple written list with your trust documents.

Download the Revocable Trust Funding Checklist

Use this checklist to keep track of each asset you’ve moved into your trust.

⚖️ What Should NOT Go Into Your Trust?

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Some assets can lose tax benefits or cause complications if you place them directly into a revocable trust. In most cases, these should stay in your individual name with carefully chosen beneficiaries.

1️⃣ Retirement Accounts (401(k), IRA, Roth IRA, 403(b), TSP). You generally cannot retitle these accounts into your revocable trust without triggering a taxable distribution. Instead, you update the beneficiary designations on each account.

2️⃣ Everyday Vehicles. Most states don’t require you to place your day-to-day vehicles into a trust. Doing so can complicate DMV records or insurance. Some families still choose to transfer collectible or very high-value vehicles on a case-by-case basis.

3️⃣ HSAs, FSAs, and MSAs. Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), and Medical Savings Accounts (MSAs) must remain in your name. You cannot retitle them into a trust, but you can typically name beneficiaries.

4️⃣ Certain Annuities. Some annuities lose tax advantages or flexibility when you retitle them. Always consult your advisor before making changes to annuity ownership.

⚖️ Gray Areas: What Goes In Sometimes

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Some assets can be handled more than one way. The best approach depends on your goals, state law, and family dynamics.

1️⃣ Out-of-State Real Estate. If you own property in more than one state, failing to place it into your trust can lead to multiple probate cases. Often, adding these properties to your revocable trust significantly simplifies things for your beneficiaries.

2️⃣ Joint Accounts. Joint accounts often pass directly to the surviving owner and may not require probate. But if you want your trust to control timing or structure of distributions after both owners pass, your attorney may recommend moving them into the trust.

3️⃣ Specialty or Hard-to-Value Property. Crypto, closely-held business interests, and specialty collections often need custom planning. Your estate planning attorney can help you decide whether they belong in the trust or are better handled with separate agreements.

⚖️ How to Fund Your Trust: Step-by-Step

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1️⃣ Inventory your assets. List real estate, bank accounts, investments, retirement accounts, insurance policies, vehicles, and valuable personal items.

2️⃣ Confirm how each asset is titled. Is it in your name, jointly owned, or already set up with beneficiaries?

3️⃣ Meet with your attorney. Review which assets should go into the trust, which should not, and the best way to coordinate beneficiary designations.

4️⃣ Retitle accounts and properties. Complete the bank and brokerage forms, sign and record new deeds, and sign any assignments for personal property.

5️⃣ Update insurance and beneficiaries. Align life insurance, retirement accounts, and payable-on-death (POD) or transfer-on-death (TOD) designations with your trust plan.

6️⃣ Keep copies with your estate planning binder. Store statements, deeds, and your funding checklist where your trustee can find them.

7️⃣ Review funding regularly. Revisit your list after major life changes or new purchases (home, business, major account changes).

Many families complete the initial funding with their attorney’s help, then use a simple checklist to keep things updated as life changes.

⚖️ Final Takeaway

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• A revocable living trust is only as strong as its funding.
• Properly funding it keeps your family out of probate and gives your trustee the authority they need.
• A simple checklist, updated over time, can prevent expensive and stressful gaps later.

Funding your trust may feel like a project, but once it’s complete, you’ve given your loved ones something priceless: clarity, access, and a clear plan when they need it most.