What Does It Mean to Fund Your Trust?
Funding a trust is the process of transferring ownership of your accounts and property from you as an individual to yourself as the trustee of your trust. Although the trust will technically own the accounts and property after the transfer, you will maintain control over them as the trustee. You will also continue to be able to benefit from those accounts and property as the primary beneficiary while you are living.
Funding a trust is accomplished in several different ways:
- Changing the title of your accounts and property from your individual name (or joint names if you are married) to the name of your trust—for example, from John Smith to John Smith, Trustee of the John Smith Living Trust, dated June 1, 2020
- Assigning your ownership interest in nontitled property (such as artwork, jewelry, collectibles, or antiques) to your trust through an Assignment of Personal Property
- Assigning your ownership interests in a limited liability company or other business entity by executing the right paperwork, such as an Assignment of Membership Interest, Stock Transfer Agreement, or a similar document, depending on the type of ownership and applicable state law
- Changing the primary or contingent beneficiary of an account or property to your trust
