How to Fund a Revocable Trust
When estate planning, you can choose many options that allow you to transfer property to your beneficiaries after you pass away. Although many people often think of legal documents such as wills when planning to distribute property, trusts have many protections that wills do not. However, trusts can only provide these benefits if they are properly funded. Failing to fund trusts, or improperly funding them, is one of the biggest mistakes people make when establishing trusts. Below, our Utah estate planning attorney explains how to do it.
What are the Benefits of Establishing a Revocable Trust?
There are many benefits of establishing a revocable trust. Trusts are separate legal entities from you and your estate and so, the property within a trust is not subject to probate after you pass away. Probate is a costly and time-consuming process. It also opens your estate to creditor claims and other factors that can diminish the assets available for your heirs and beneficiaries. In the event that you ever become incapacitated, you can have peace of mind knowing that the successor trustee you named will manage the property within the trust.
Although there are many benefits of establishing a revocable trust, they can only be realized if the trust is funded properly.
How to Fund a Revocable Trust
To fund a revocable trust, you must transfer ownership from yourself to the trust. The way to do this depends on the type of property.
- Real estate: To place real estate in a trust you will need to prepare a new deed that transfers ownership from you to the trust. You will sign the deed in front of a notary public and then file it with the county recorder’s office in Utah where the property is located.
- Bank and investment accounts: You can place a bank account in a trust by contacting the financial institution and providing them with the name of the trust. However, it is important to speak to an attorney, as it may be more beneficial to create a payable-on-death designation with a named beneficiary.
- Vehicles: You can transfer the title on up to four vehicles through the Department of Motor Vehicles (DMV).
- General personal property: You can create a general ‘Assignment of Assets’ document to transfer other types of personal property to the trust.
It is important to speak to an attorney who can help ensure your trust is properly funded and advise on other important details. For example, if you have a mortgage on real estate, you may have to notify the lender. You may also have to notify the company you have a homeowners insurance policy with to inform them that the trust is the new owner of the property.
Our Estate Planning Attorney in Utah Can Help
Trusts have many benefits but only if they are properly funded. At AGS Law, our Utah estate planning attorney can guide you through all of the steps to ensure your trust will provide the protection you and your family need. Call us now at 801-477-6144 or contact us online to schedule a consultation and to get the help you need.
Source:
le.utah.gov/xcode/Title75/Chapter7/C75-7-P6_1800010118000101.pdf
