Creating a living trust is an important step in ensuring that your assets are protected and correctly passed on to your loved ones. However, creating the trust document is only half the journey. To truly benefit from your living trust, you need to fully complete it by funding it! This article will walk you through the process of funding your trust, explain why funding is so important, and help you transfer your assets, step by step.

Funding your trust is the process of transferring ownership of your assets into the trust. This way, you can ensure that all of your assets flow directly into the trust’s control as soon as the transfer of the trust to your successor trustee goes into effect.

Funding your trust involves changing the legal titles of your property, bank accounts, and other assets from your name (or joint names if there are multiple owners) to the name of your trust. In some cases, it may alternatively mean naming your trust as the beneficiary to your assets.

Look at your trust like a vault. Its intended purpose is to protect its contents, but if there’s nothing within it, it has nothing to protect. Similarly, a living trust only controls the assets you place into it. If you don’t transfer your assets to the trust, they will still go through probate. This can result in delays, additional expenses, and a lack of privacy for the assets left out of the trust.

To avoid this, taking proactive steps to ensure your trust is funded will save your family a lot of time and spare them the headache of having to figure these steps out on their own.

Most of your assets should be transferred to your trust, including:

Some assets, like retirement accounts and life insurance policies, cannot be owned by your trust but can have the trust listed as a beneficiary.

A good starting point for this process is reaching out to your mortgage lenders, bank representatives, and financial planner for guidance, as each institution may have its own procedures. Also, these professionals are experienced in assisting with trust funding and can provide all the support you will likely need. Otherwise, consulting with an attorney can help you ensure your trust is fully funded correctly.

Below is a detailed explanation of how to transfer different types of assets into your trust to avoid probate and ensure a seamless and easy transition of your estate to your loved ones.

Real estate is often one of the most valuable assets people own, so it’s important to properly transfer it into your trust. This process starts with preparing a deed—typically a quitclaim deed—to transfer ownership of the property to the trust. The deed must include the correct legal description of the property and specify the trust as the new owner. Once prepared, the deed must be recorded at your local county recorder’s office to finalize the transfer.

If your property has a mortgage, we recommend notifying your lender about the transfer. Most lenders are not allowed to enforce a "due-on-sale" clause for transfers to a revocable trust, but notifying them ensures their records are updated. Each lender is different and some may have specific steps or actions you will need to take, so it is a good idea to call them up and ask what steps they recommend taking to properly transfer ownership or inheritance rights to your trust. For future property purchases, you’ll want to have the property titled in the name of the trust at the time of purchase to avoid the need for later transfers.

To transfer your bank accounts into your trust, start by contacting your bank and requesting the forms needed to change account ownership. Every bank is different, so the exact process can vary. Banks often require a certification of trust, which confirms the trust’s existence and your authority as the trustee. Once the paperwork is complete, the accounts should be titled to show the trustee acting on behalf of the trust as the legal owner. This allows your successor trustee to access your financial accounts when they take over for you as trustee.

For investment accounts and stocks, contact your brokerage firm or financial advisor to begin the transfer process. This usually involves completing specific forms provided by the brokerage. If you hold paper stock certificates, you’ll need to surrender them to have new certificates issued in the name of the trust.

Certain assets—like retirement accounts (IRA, 401k, etc.) and life insurance policies—cannot have their ownership transferred to a trust without triggering tax implications. Instead, you can name the trust as a contingent beneficiary. To do this, contact your account provider and ask them to assist you in making these updates by completing their beneficiary designation forms.

If you own a business or hold interests in an LLC or Corporation, transferring these assets into your trust requires attention to detail. You’ll need to take some steps for the sake of internal corporate governance, and also consider a few steps for external parties.

Tangible personal property, such as jewelry, artwork, and household items, should already be included in your trust. We recommend filling out your asset schedule in your estate planning portal. This is an optional step, but it ensures your valuable personal property is covered. If any of this property is housed by an external party (like a safety deposit box or other storage facility), you’ll need to discuss any necessary documentation with the account provider.

A pour-over will acts as a backup plan for any assets that were not transferred to your trust during your lifetime. When you pass away, the will directs those assets into the trust so they can be managed and distributed according to its terms. However, it’s important to note that assets transferred to the trust through a pour-over will still go through probate, so it’s better to move as much as possible into the trust while you’re alive.

Some types of assets require special handling when funding a trust. For example, retirement accounts should not be directly transferred to the trust, as this can lead to taxes and penalties. Instead, naming the trust as a beneficiary ensures the accounts avoid probate and pass directly to the trust. Similarly, vehicles often do not need to be transferred to the trust—instead, the executor of your estate will need to visit the DMV with the car title, death certificate, and other necessary paperwork to legally transfer the title to the designated beneficiary in your trust or will.

Each state has its own rules about how to title assets in a trust. Consulting an estate planning attorney can help ensure you follow these regulations and avoid potential complications. If you have specific questions about your situation, you can contact:

It’s also worth remembering that funding your trust is an ongoing task. Whenever you acquire new assets, make it a habit to transfer them into the trust and update your documents through your estate plan portal. Regularly reviewing your trust ensures it stays updated with your current circumstances and wishes.