How To Fund Your Revocable Living Trust
Here at DAL Law Firm, we help our clients with their estate planning needs. When people think about estate planning and trusts, there can be a lot of questions, and the way estate planning works is different in different states.
This blog will cover how to fund your revocable living trust, but first, let’s start with an overview of what a revocable living trust is. A revocable living trust is an estate planning document where you are providing for the disposition of your assets within the revocable living trust as opposed to a will. One of the main reasons our clients want a revocable living trust is because it is not required to go through probate. However, in order for the revocable living trust to work it has to actually own the asset. So when we create a revocable living trust estate plan for our clients, we are also funding the trust for you initially, based on the assets that you own at the time.
Funding a revocable living trust involves transferring your assets into the trust so that they are owned by the trust and managed according to your instructions. The specific process may vary depending on your jurisdiction and the nature of your assets, but here are general steps to help you understand how to fund your revocable living trust:
- Create a revocable living trust: Consult with an estate planning attorney to establish a revocable living trust and determine its terms, provisions, and beneficiaries. The attorney will draft the necessary legal documents, including the trust agreement.
- Review your assets: Compile a comprehensive list of your assets, including real estate, bank accounts, investments, vehicles, valuable personal belongings, and any other property or accounts you wish to transfer into the trust.
- Identify transferable assets: Determine which of your assets can be transferred into the trust. Generally, most types of property can be included, but some assets may require specific procedures or documentation, such as a quit claim deed for any real estate you own, in order to transfer it into the revocable living trust.
- Update beneficiary designations: Review and update the beneficiary designations for assets such as life insurance policies, retirement accounts, or payable-on-death (POD) accounts. You can name the trust as the primary or contingent beneficiary to ensure these assets are properly integrated with the trust.
- Keep records: Maintain detailed records of all transactions related to funding your revocable living trust. This includes copies of ownership documents, correspondence with institutions, and any relevant receipts or confirmations.
- Regularly review and update: As your financial situation evolves, periodically review and update your trust to ensure it remains aligned with your goals. Additionally, remember to fund newly acquired assets by following the appropriate procedures. We advise our clients to review their estate plan every five to ten years, or when a significant life event occurs (birth, death, marriage, or a divorce concerning anyone involved in your estate plan.
It’s important to note that the above steps provide a general framework for funding a revocable living trust, but the process may vary based on your specific circumstances. To ensure proper execution and compliance, it is strongly recommended to work with an experienced estate planning attorney who can guide you through the process based on your individual needs.
If you’d like to watch a video from our attorney Darcel Lobo, you can do so here:
If you need assistance with creating an estate plan, whether you’re interested in a will or a revocable living trust, reach out to our office at (206) 408-8158 or visit us online at www.dallawfirm.com and we would be happy to assist you.
We’re conveniently located in Normandy Park and offer consultations virtually or in person.
19803 1st Avenue S.
Normandy Park, WA 98148
T (206) 408-8158
F (206) 374-2810
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