The Crucial Step: Funding Your Trust 

By Rebecca S. Spinner, Esq. 

Creating a trust is a significant step in estate planning. However, simply drafting the trust document is not enough. The most critical part of the trust creation process is funding the trust. Funding your trust means that you are transferring assets from your personal name to the name of the trust (or at a minimum naming your trust as beneficiary on your account).    

Why is Funding Essential? 

  • Asset Protection: many trusts are designed to protect your assets from a variety of different risks. If assets remain in your individual name, they may be subject to: 

Probate: A lengthy and potentially costly legal process.    

Creditors: If you face significant debt, creditors may be able to make claims against your assets. 

Nursing Home Costs: In some cases, your assets may be subject to your long-term care costs if not appropriately funded into your trust.    

Tax Benefits: Depending on the type of trust, properly funding can provide significant tax savings. 

Control and Flexibility: Funding allows you to maintain control over how your assets are managed, and to ensure that they are distributed according to your wishes. 

How to Fund a Trust 

Funding a trust can vary in complexity depending on the type of assets involved. Here are general steps: 

  • Gather Necessary Documents: This may include deeds, titles, bank account information, stock certificates, and insurance policies. 
  • Retitle Assets: 
  • Real Estate: Transfer ownership of property to the trust by recording a new deed with the appropriate county.    
  • Bank Accounts: Contact your bank to change the account ownership to the trust, or to name the trust as a beneficiary on the account (which next step will be appropriate for you will depend on the type of trust, so be sure to discuss with your Estate Planning Attorney before making any changes).    
  • Investments: Retitle stocks, bonds, and other investments in the trust’s name, or name the trust as a beneficiary. (which next step will be appropriate for you will depend on the type of trust, so be sure to discuss with your Estate Planning Attorney before making any changes). 
  • Life Insurance Policies: Change the beneficiary of the policy to the trust.    
  • Update Beneficiary Designations: When appropriate, ensure that all beneficiary designations on retirement accounts (IRAs, 401(k)s) and other accounts reflect the trust as the beneficiary (whether this is appropriate for you will depend on the type of trust, so be sure to discuss with your Estate Planning Attorney before making any changes). 

Why Choose Our Firm to Assist? 

Our experienced estate planning and elder law attorneys can guide you through the entire trust funding process. We offer: 

  • Expert Guidance: We understand the complexities of trust funding and can ensure that your assets are transferred correctly and efficiently. 
  • Personalized Service: We will work closely with you to understand your specific needs and goals and provide you with personalized instructions so that you are confident in all of the changes you are making.  
  • Attention to Detail: We meticulously review all documentation to minimize the risk of errors. 
  • Peace of Mind: Knowing that your trust is properly funded provides valuable peace of mind and ensures your wishes are carried out as intended.    

Funding your trust is extremely important. Unfortunately, often, clients are overwhelmed by the funding process, and they are unable to complete it. That is why at Surprenant & Beneski, P.C., we make sure that we provide our clients with ample information and guidance to complete the funding process. We explain the funding process and stress its importance as part of their plan. We are always here to answer their questions and will reach out to financial advisors to get that process started.   

For those who prefer to have funding completed by our team, our office offers an additional service where our team manages the funding process. 

 It is my job to ensure that our clients understand their plan from start to finish and assist them in any way I can with the funding process. My goal is to provide our clients with peace of mind that their trust is going to work properly and as they intended.” 

Ashley AlgarvioLead Case Manager, Estate Planning

Ashley Algarvio  

Lead Case Manager, Estate Planning 

Contact our firm today to schedule a consultation and learn more about how we can assist you with funding your trust. 

Disclaimer: This article is for informational purposes only and does not constitute legal advice.