Funding Your Revocable Living Trust
by JJ Childers
This week's Monday Morning Mentor Minute
Hello, I’m JJ Childers and I’m happy to be your Monday Morning Mentor once again. Last week, we discussed what it means to fund a living trust and how failing to do so can prevent your trust from keeping your estate out of probate and reducing or eliminating the estate tax.
This week, let’s talk about exactly how one funds their living trust. Basically, there are two types of assets: those that have some sort of document of ownership and those which do not. First, for those assets which have a document of ownership such as a deed, title, or certificate, you’ll need to change the document to reflect that the new owner of that asset is the trust. For those assets which do not have a document of ownership, you will need to execute an “Assignment of Personal Property.” This would change the ownership of your ordinary personal assets such as furniture, jewelry, or home electronics into the name of your trust. Also, for both types of assets you’ll need to list it at the end of the living trust agreement on “Schedule A.”
Just a final note, depending upon the size and complexity of your estate it may be wise to consult with an attorney who can help with this important step in your estate planning.
