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Q.How do I put my assets into the revocable living trust?
A.Once your trust has been signed, an important task remains, "funding" the trust. For each piece of property you own, a deeds must be prepared and recorded evidencing the transfer from you to the trust. In addition, bank accounts, investment accounts, individual stock certificates (e.g., if you own stock in a corporation), and membership interests (if you have an interest in a limited liability company) must be transferred out of your name and placed into the trust. These tasks are not necessarily expensive, but they are extremely important and do require some paperwork and footwork.
If you own real estate in another state, you might (depending on that state's law) transfer that asset to your trust to avoid probate in that other state. A lawyer from that state can help you prepare the deed and complete the transfer. If the real estate is located in California, a California lawyer should prepare the deed and advise you on transferring such property.
A lawyer can also help you transfer other assets. For example, you may want to consider changing the beneficiary designations on life insurance to the trust (depending on the tax consequences of course). Before you change any of your beneficiary designations on IRAs and 401Ks, however, you should speak to either a CPA or attorney because there could be serious income tax issues.
Can you imagine, the inevitable occurs and your loved ones discover that nothing you own was ever properly transferred into your trust. This happens more often than you would like to think. If you used a paralegal or online service to prepare your estate plan or trust be sure to have it reviewed by a local licensed Wills, Trusts, and Estate Attorney. If you have yet to prepare a trust, we strongly recommend you use an attorney.
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