When making a revocable living trust, it’s not enough to simply sign the trust. After signing it, the trust needs to be funded. Funding a trust is simply the process of transferring assets into the trust. If people do not put their assets into the trust, then they have failed to properly fund the trust.
How Do People Move Assets Into a Living Trust?
There are two common ways that people transfer their assets into their living trusts, which depends on the type of asset (e.g., real estate, investments, bank and savings accounts, or intellectual property).
1. Changing the title – With real-estate property, or even investment accounts and bank accounts, the legal title needs to be changed from the individual owner to the name of the trust. Once the names on the titles have been changed, they are moved into the trust.
2. Assigning ownership rights – Items without a legal title such as antiques, jewelry, works of art, and intellectual property can be moved into the trust by assigning ownership rights from the individual to the name of the trust.
How Hard Is it to Fund a Trust?
Funding a trust isn’t too difficult; it just takes time because it can be a lengthy process. It is easy to procrastinate and push it off because the process does take time; however, there is no time like the present. What if something happens to you before you were able to get your trust funded and complete? Although you can handle the funding online, by mail, or over the phone, most companies will want to see proof of your trust before documents are changed. This is why an attorney may be helpful to you.
Not only can a Georgia estate-planning attorney prepare a certificate of trust for you, which will prove your trust’s existence, but your lawyer can ensure your trust is properly funded to give you peace of mind. While the process isn’t overly difficult, it is easy for many people to stop along the way before they have finished funding their trust.
If you want help funding your trust or making changes to your living trust in Georgia, you may want to lean on the experience and knowledge of a Peachtree City estate-planning lawyer. Call Shane Smith Law for a free consultation at (980) 246-2656 today.