How to Donate To a Living Trust
Donating property or money to a living trust is accomplished by transferring physical possession or a certificate of title to the donated property. Some property requires evidence of title, such as a real estate deed or a car title, while other property simply requires physical possession, such as jewelry or household furnishings. In either case, however, it is best to provide a written record that evidences donation of the property to the living trust.
Other People Are Reading
Things You'll Need
- Assignment of property, bill of sale or quitclaim deed
- Name of the trustee
- Name of the living trust
Instructions
-
Donating to a Living Trust
-
1
Contact the trustee of the living trust to get the trustee's full name and the official name of the living trust.
-
2
Prepare and sign a quitclaim deed from yourself, as grantor, to the trustee, as grantee. You will need a public notary to acknowledge your signature. This step is necessary only if you are donating real estate, like a house or land.
-
-
3
Prepare and sign a bill of sale from you to the trustee. Most states provide forms to carry out these donations. This step is necessary only if you are donating a car, boat, or some other property that is not real estate but still requires a document of title,
-
4
Prepare a simple assignment of property that says "I, _________, donate to ________, Trustee of the _______ Living Trust, the following property: [List the donated property." Sign and date this assignment of property. Keep one copy for yourself, and give a copy to the trustee. This step is necessary only if you are donating personal property that does not require a document of title, such as a grand piano.
-
5
Record the original, signed quitclaim deed with the county recorder for the county where the donated property is located. This step is necessary only if you are donating real estate.
-
6
Transfer physical possession of the property to the trustee of the living trust.
-
1
Tips & Warnings
Always reference the trustee in his official capacity. For example, if the trustee's name is Joe Bob, then reference "Joe Bob, as Trustee of the Bob Family Living Trust." Using the official trustee title ensures that the property is donated to the trust and not to the trustee individually.
When you donate property to a living trust, you give up your personal right of ownership in that property. So even if you are the beneficiary (and, possible, the trustee) of the living trust, you still lose your personal rights in that property. Depending on the type of living trust, you may never get that property back, so think carefully before making the donation.
