You may know that creating a trust can protect your assets and provide for your loved ones after you pass away. But what does it mean to fund the trust? Where do you start?
Funding a trust involves transferring ownership of your assets into the trust. It can help to ensure that the assets are managed and distributed according to the terms of the trust rather than through probate. Properly funding a trust is crucial for it to function as intended. Here are three common funding options.
Real estate
To fund a trust with real estate, you need to change the title of the property to reflect the trust’s ownership. It typically involves preparing a new deed that transfers the property from your name into the name of the trust. Recording this deed with the appropriate local government office makes the transfer official.
Bank accounts
You can transfer your bank account assets into a trust by changing the account ownership from you to the trust. In most scenarios, this usually requires visiting the bank and providing them with a copy of the trust document. The bank will then update its records to reflect the trust as the new account holder.
Investment assets
Investment accounts, such as stocks, bonds and mutual funds, can also be transferred into a trust. Once your trust document is complete, contact your financial institution and complete the necessary paperwork to give the trust ownership. Some institutions may require additional documentation, such as a certification of trust.
As you can see, creating a trust involves more than executing a document. To help ensure your trust reflects your wishes and aligns with Florida law, consider getting legal guidance.