How to Set Up Money in a Trust
Setting up a trust is an effective way to make sure that your children are provided for when you are gone. Once you pass away, the money in your trust is passed on to the beneficiary of your choice. Before this can happen, you must take the necessary steps to set up the trust and put money into it. This can be done on your own, but many people hire an estate planning attorney to help with this process.
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Instructions
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Create a trust document with the help of an estate planning attorney or on your own. If you choose to pursue this option on your own, you can get estate planning software that will help you complete the process. When you create the document, it will outline the terms of your trust, such as who the trustee is, who will receive the assets from the trust and when they will be transferred. Sign the trust in front of a notary to make it official.
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Open an account with a financial institution in the name of the trust. You can open a standard account as long as the name of the trust is the owner of the account. Some trust creators open savings accounts or money market accounts so that the money can earn interest. You could also hold investments inside the trust account.
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Transfer money into the trust account. Until you fund the trust account, you have not actually done anything to protect your assets for your beneficiaries. If you die before making the transfer to the account, your beneficiaries will not get to reap any of the benefits from you setting up the trust.
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Provide information about the trust account to the executor of your estate. You need to provide account numbers and information about the financial institution with which you have the account. This way, when you pass away, the executor can find the account to ensure that the assets are transferred over to your beneficiaries at the proper time.
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