You may sign a living trust to manage and eventually transfer your property, expecting it to carry out your wishes and simplify matters for your family. However, it generally controls only assets you formally place in it. Funding is the process of connecting what you own to the instructions in the document.
How do you transfer property into the trust?
The transfer process depends on the type of property you own. For California real estate, funding generally requires a new deed that names you as trustee. Depending on the transfer, this may be a grant deed or quitclaim deed. You may also need to file a Preliminary Change of Ownership Report with the county.
Moving your home into your revocable trust generally does not trigger a property tax reassessment while you continue to control the trust and can change or cancel it. Different tax rules may apply when the home later passes to another person.
Banks and investment firms typically use their own forms to change nonretirement accounts from your individual name to your name as trustee. A separate assignment document can cover personal belongings, such as jewelry, artwork and furniture.
Which assets use beneficiary forms instead?
Retirement accounts generally stay in your name during your lifetime. Life insurance and some financial accounts also pass according to beneficiary forms rather than trust ownership.
Depending on your plan, you may name an individual or the trust as a beneficiary. Review each form alongside your estate plan instead of assuming one document overrides the other.
Keep your trust aligned with your assets
A current list of your major assets and beneficiary designations can make it easier to see how each one fits into your estate plan. Reviewing that information after opening an account, buying property or refinancing a home may also help identify assets that were never transferred or no longer reflect your wishes.