Trust Asset

Signing a trust agreement without physically transferring assets into the trust is like putting on your socks but forgetting your shoes. Assets are NOT automatically transferred into your trust just because you signed it. Here are some helpful tips on how to transfer the most common types of assets into your trust.

1. Change the title of your checking and savings accounts and certificates of deposit, which are to be held in the Trust, to:Example: The name of the Trust, or its successors in trust, of the Revocable Living Trust dated [Date], as now or hereafter amended.
2. Re-register all stocks, bonds, and brokerage accounts to be held in the Trust in the name of the Trust.Example: The undersigned hereby assigns all right, title, and interest in and to the following securities to the name of the Trust, or its successors in trust, of the Revocable Living Trust dated [Date], as now or hereafter amended.
3. Assign all Partnership interests and LLC interests to the name of the Trust.Example: The undersigned hereby assigns all right, title, and interest in and to the following Partnership Interests/LLC Interests to the name of the Trust, or its successors in trust, of the Revocable Living Trust dated [Date], as now or hereafter amended.

   Any required acceptance of the General Partner and/or other partners for Partnership interests, or the Manager and/or other members for LLC interests, should also be obtained. Any other transfer requirements or restrictions imposed by the entity’s Partnership Agreement or Operating Agreement also need to be complied with.

4. Convey real estate which is to be held in the Trust to the name of the Trust.Example: The name of the Trust, or its successors in trust, of the Revocable Living Trust dated [Date], as now or hereafter amended.

   The deed should be in proper form to meet the requirements of the state in which the property is located. You should contact your title insurance company and homeowner’s insurance company to determine if any addendum or rider is needed to continue the insurance once the property is transferred to your Trust. If you have a mortgage on your property, you should contact your mortgage lender to determine if a transfer to a trust is allowable. Most banks have no issue with a conveyance to a revocable living trust, but a transfer to an irrevocable trust may not be allowable.

5. Change the beneficiary of insurance policies payable to the Trust to the name of the Trust.Example: The name of the Trust, or its successors in trust, of the Revocable Living Trust dated [Date], as now or hereafter amended.
6. Change the beneficiary designation of retirement benefits.Example: The name of the Trust intends to name beneficiaries of its IRA and provide that if any named beneficiary does not survive the Trust, then their share will pass per stirpes to their then living descendants.

Different financial institutions have different forms required to transfer accounts to a Trust. You will need to contact each financial institution to determine what is required.

You do NOT need to transfer all of your assets into your Trust. It is up to you which assets to transfer and which to leave alone. In addition to speaking with your attorney, you should also speak with your accountant and/or financial advisor to understand what tax and/or financial consequences there are for transferring particular assets into your Trust.