Funding the Revocable Living Trust means changing the ownership or the beneficiary designations to insure your assets are in your Revocable Living Trust at your death. This is very important to complete. We at Wieber Green, PC, can prepare the very best Trust for you, but if it is not properly funded, the Probate Process may be needed to transfer the assets to the Revocable Living Trust.
Here are some funding tips:
The best plan is to name the Revocable Living Trust as the Primary Beneficiary. This does not require a new account to be opened by you, and it will avoid all the problems and inconveniences encountered with having to open a new account.
Stock – Broker Accounts:
Name the Revocable Living Trust as the Primary Beneficiary.
If you are married, your spouse will be named as the Primary Beneficiary, and the Revocable Living Trust will be named as the Contingent Beneficiary.
Deferred Income Accounts (Such as Annuities, IRA, 401k, 403b):
Do Not name the Revocable Living Trust as the owner. If you are married, your spouse should be named as Primary Beneficiary. You should consult with your Financial Advisor regarding the naming of the Beneficiary for these assets. There can be unexpected tax consequences that need to be considered. There are several options to discuss regarding the beneficiaries for these assets, including a special Trust to help defer the payout over the life expectancy of the beneficiary.
Real Estate is generally deeded to the Revocable Living Trust at the time
the Revocable Living Trust is drafted. Any real estate acquired after the Revocable Living Trust is drafted should have a deed prepared and recorded titling the real estate in the Revocable Living Trust.
Do not title motor vehicles in the name of the Revocable Living Trust for liability reasons. There is a special process to transfer motor vehicles at the time of death without the Probate Process.
This is intended to be general information, and it may not be appropriate for your specific needs. You may wish to consult with us regarding your specific situation before you name any beneficiaries.