What does it mean to "fund" a Trust?

When attorneys talk about "funding a Trust", they're talking about the process of transfering assets to the Trust.

A Trust (sometimes called a Family Trust, Living Trust, or Revocable Trust) is usually designed to own most of your assets. You obtain the advantages of a Trust (avoiding probate, planning for disability, continuity of management, etc.) only if your assets are formally transferred to the Trust.

How you transfer assets to a Trust depends on the asset. For example, the name on a bank account might be changed from "Jane Doe" to "Jane Doe, Trustee of the Jane Doe Trust". This is typically done at the bank, using the bank's internal forms.

Stock Certificates (you know, the ones where you hold the the actual company stock) might require that you send the original certificate to a stock transfer agent, and have the certificate re-issued in your name as Trustee.

California real estate usually requires the recording of a Deed with your County Recorder. Be careful, this type of transfer can result in a property tax reassessment if you don't also file a properly completed Preliminary Change of Ownership Report with the County Assessor.

Out-of-state property can (and in many cases should) be transferred to your Trust, but requires knowledge of the other state's property transfer laws and property tax laws.

For information only; may NOT be relied upon as legal advice. For specific questions about your Trust, please call 805.494.4569 to to schedule a legal consultation