You can create a trust to avoid probate, protect your assets, and enjoy other benefits. To enjoy those benefits, you will first need to transfer your assets to the trust, also known as “funding the trust.” To fund the trust, you will have to title the asset in the name of the trust. For instance, if you wanted to fund the trust with your real estate, you will title the real estate in the name of the trust by deeding the property to the trust.
You can only fund the trust with certain kinds of assets. Examples of assets you can fund your trust with include the following:
• Bank accounts – A reason to transfer your bank account(s) to your trust is to choose how the funds from the account(s) are distributed to your beneficiaries.
o Examples of bank accounts that can be transferred to a trust include checking accounts, savings accounts, money market accounts, certificates of deposit, and safe deposit boxes.
• Real estate – To transfer real estate to your trust, you will need to sign a deed transferring the property to the name of the trust.
• Insurance policies– A reason to consider transferring your life insurance policy proceeds to your trust is to choose how the funds from the life insurance policy are distributed to your beneficiaries. The trust could hold onto the funds and make disbursements to beneficiaries over time.
• Investment assets – To transfer investment assets, you may have to fill out transfer documents with your brokerage.
o Examples of investment assets include stocks, bonds, and cryptocurrencies.
• Tangible investment assets – To transfer tangible investments assets, you can use an instrument of assignment or Bill of Sale for a transfer with no consideration.
o Examples of tangible investment assets include gold, silver, antiques, stamps, artwork etc.
• Limited liability company membership interest – The Operating Agreement, if any, will need to be reviewed to see if there are any restrictions or requirements when transferring the membership interest.
• Partnership interest – The Partnership Agreement will need to be reviewed to see if there are any restrictions or requirements when transferring the interest.
• Corporation shares – Corporation documents, such as the corporation’s bylaws, will need to be reviewed to see if there are any restrictions or requirements for the transfer.
• Patents – To transfer a patent to your trust, you will need to assign it to your trust. Transferring your patent(s) to your trust can prevent the patent(s) from going through probate.
• Copyrights – To transfer a copyright to your trust, you will need to assign it to your trust. Transferring your copyright(s) to your trust can prevent the copyright(s) from going through probate.
• Tangible personal property – There are generally two ways to transfer tangible personal property to your trust: (1) create a pour-over will (transfers assets to your trust after you die, but they will go through probate) or (2) assign tangible personal property to your trust (this can be done by using an assignment of property to trust document.
o Examples of tangible personal property include furniture, jewelry, dishes, clothes etc.