How to Process a Living Trust
Once you have decided you need a living trust and have prepared and signed the necessary trust document, you are almost finished with the process of setting up your living trust. The next step involves funding the trust by transferring into the trust all the property you want to be in the trust. Typically, this will be all property that you do not want subject to probate when you die. Any property you own at death outside of the trust may have to be probated depending upon its type and value.
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Instructions
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Make a list of all your property that you want included in your living trust, such as your home and other real estate you own, vehicles, bank accounts, retirement accounts, stocks, and any other property that would have a "title document" (e.g., a grant deed or stock certificate) associated with it.
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Gather the title documents for all of the property on your list. You will need the information from these documents, in particular how your ownership interest is stated, to prepare new title documents and any related transfer documents.
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Obtain the necessary transfer document for each title document you have gathered and prepare the transfer documents according to their instructions. For example, for your home, you should obtain a trust transfer deed that will indicate you are transferring the home from your name individually to yourself as trustee of your living trust. For any vehicles, you should use the transfer documents required by your state's DMV to transfer the vehicles to yourself as trustee of your living trust. Your stock broker and banker should be able to assist you with similar transfer documents for transferring those assets to yourself as trustee.
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Tips & Warnings
All of the assets transferred to your living trust will be managed by the successor trustee upon your death and distributed to your heirs according to the instructions in your trust, without probate court involvement. Your heirs save time and money because a distribution of property from a living trust takes less time and money than probating an estate; however, your property must first be transferred to the living trust during your lifetime.
Beware of low-cost living trust preparation services. The low cost is usually because the preparer is only helping you with the trust document and not providing any assistance with the documents required to fund the living trust. When inquiring about services for preparing a living trust, always ask how much the services cost for funding the trust as well. An unfunded living trust does not serve any useful purpose.
