How to Gift Assets From a Revocable Trust
A trust grantor can pass on gifts to heirs and beneficiaries, such as minor children, relatives and spouses. Because trusts are not subject to probate until after the trust grantor's death, the trust can avoid taxes during the trust grantor's lifetime. You must fill out a few forms to legally relinquish assets from a trust to a beneficiary. Trust documents are available for free through some legal document supplier websites.
Other People Are Reading
Instructions
-
-
1
Review the deed of trust. Look for provisions that set conditions on gifts. For example, a beneficiary may not receive ownership of real estate until he comes of legal age or graduates from college.
-
2
Provide beneficiaries of the trust with written notice of administration upon a trust grantor's death. Notification of administration alerts beneficiaries that a trustee is winding down the affairs of the trust.
-
-
3
Identify and collect the assets owned by the trust. Appraise all high-value assets.
-
4
Transfer gifts from the estate into the name of the beneficiary using an assignment, a legal instrument whereby property is transferred from one entity to another.
-
5
Sign over trust accounts. A "Totten Trust" is a financial account that permits a grantor to hold money for a beneficiary. The account is "payable on death" (POD). Have the beneficiary sign a new signature card to take over ownership of the account.
-
6
Relinquish the gift to the beneficiary. Hand over keys, if necessary, and titles or deeds to property.
-
7
File IRS Form 709 (see Resources). If the combined value of a gift distributed to a beneficiary exceeds the federal gift tax threshold of $13,000 (as of 2011), file IRS Form 709 with the IRS.
-
1
