How to Assign Royalties on a Living Trust
Trusts need assets in order to function. To fund a trust, the grantor -- the creator of the trust -- must sign over title to the assets to the name of the trust. In a living trust, the grantor acts as both the trustee and the beneficiary during his lifetime. This allows the grantor to retain control and possession over the trust assets while he is alive. Royalty rights -- from land interests or otherwise -- can be transferred into the name of the trust.
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Instructions
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Determine the nature of the royalties. The nature of the royalties determines what steps you must take to transfer that asset to your living trust. Obtain the names and addresses of the people who are making the royalty payments.
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Transfer the rights to receive the royalties into the name of your living trust. If the royalties are from land interests -- such as for oil or gas rights -- you need to execute a new deed that entitles your trust to receive the payments. For royalty contracts -- from intellectual property such as copyrights or patents -- you need to assign the contract over to the name of the trust.
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Notify the people making the royalty payments that you have assigned your interests to your trust. Direct the people to make future royalty payments in the name of the trust.
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Deposit the royalty payments into your living trust account.
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Tips & Warnings
Assigning contracts and creating new deeds involves legal processes that affect legal rights. If you are unsure how to proceed, or if you have specific questions about your royalty rights, seek assistance from an attorney in your area.
