Summary
A trust must be funded to be valid, since only assets that have been transferred to the trust during the grantor's lifetime will benefit from the advantages of a living trust Funding a trust involves the actual process of changing the ownership of certain assets to the trust's name or designating the trust as a beneficiary of accounts. The trust is then able to stand as a separate entity that holds the property. Where real estate is involved, a new deed is drawn up which changes the ownership from the name of the individual to that of the trustee of the trust The grantor transfers title from him or herself as an individual back to him or herself as trustee of the trust For example, the deed will say "Jane Doe, an individual hereby grants to Jane Doe as trustee of the Jane Doe Trust, the real property located at 123 Main Street." That deed is then filed with the county recorder where the real estate is located. For bank accounts, insurance policies, brokerage accounts, and similar accounts, the institution that holds the account must be contacted and requested to change the ownership or beneficiary designation, as appropriate.
For bank accounts, insurance policies, brokerage accounts, and similar accounts, the institution that holds the account must be contacted and requested to change the ownership or beneficiary designation, as appropriate.See the full content of this document
Extract
Breathing Life Into the 'Living Trust'
Many people having good intentions establish a living trust to operate during their lifetime in case of disability and to distribute their assets without probate when they pass away. However, some ...
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