• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Wilcox Attorneys, PA

Wilcox Attorneys, PA an Arkansas Estate Planning & Trust Information Center

Northwest Arkansas Estate Planning Attorneys (479) 443-0062

Client Vault
  • Home
  • Our Firm
    • Our Firm
    • About the American Academy
    • Advantages of Working With Our Firm
    • Attorney and Staff Profiles
    • News & Events
    • Speaker Connection
  • services
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Incapacity Planning
    • Legacy Planning
    • Pet Planning
    • Secure Act
    • Special Needs Planning
    • Trust Administration & Probate
  • Webinars
  • Practice Areas
  • Resources
    • DocuBank
    • Elder Law Reports
    • Estate Planning Resources
      • Estate Planning Articles
      • Estate Planning Checkup
      • Estate Planning Definitions
      • Estate Planning Reports
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
    • Frequently Asked Questions
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • Incapacity Planning
      • Legacy Wealth Planning
      • Medicaid Planning
      • Pet Planning
      • Probate
      • Trust Administration & Probate
    • Newsletters
    • Pre Consultation Form
    • Trust Administration & Probate Resources
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
  • Reviews
    • Our Reviews
    • Review Us
  • Contact Us
  • Blog

How to Fund a Living Trust

September 22, 2014 by Deb Sexton Leave a Comment

fund a living trustThere are many benefits to be gained from creating a living trust.  Some of these benefits include being able to protect certain property for your beneficiaries, reducing estate taxes, planning for your incapacity and avoiding will contests.  Drafting the terms of a living trust is just the first step to protecting assets as part of a comprehensive estate plan.  A living trust must actually be funded with assets.  Many people overlook the fact that you must fund a living trust, which means transferring your assets and property to the trust.  How a trust is funded depends on the nature of the assets to be included in the trust.  There are several options to choose from and your estate planning attorney can help you decide the method that best fits your needs.

What is meant by “Funding a Trust”?

When a trust agreement is created, signed and executed, the next step is funding, or transferring assets to the trust.  This is generally accomplished one of three ways.  You can change the title or ownership of the property, assign the ownership rights to the trust, or change the name of the beneficiary.

Changing ownership of your assets

Assets like bank accounts, investment accounts, stocks, bonds and real estate can easily be funded into the trust by changing the name of the owner to the name of your trust.  It may be as simple as changing the name on the account.  However, each financial institution may have different policies or procedures.  For instance, you may be required to close the original account and then open a new account in the name of the trust.

Assigning ownership rights to the trust

With personal property, such as personal loans, partnerships and intellectual property, which do not require a certificate of legal title, ownership in the property can be assigned to the trust.  Intellectual property rights to creative works, such as patents and copyrights, can be funded into the trust using a simple form.

Changing the names of beneficiaries

There are other types of assets, including insurance policies, retirement accounts and pension benefits, that require a named beneficiary.  These assets are not retitled into the name of a trust, but, instead, are transferred by changing the names of the beneficiaries.

What about property not included in the trust?

If you do not include certain property in your living trust, that property will need to be probated when you die.  If you do not consider this fact, when creating a living trust, your estate plan may not be as effective as you had hoped.  A trust that is not properly funded will likely not serve its intended purpose.

If you have questions regarding funding living trusts, or any other estate planning needs, please contact Wilcox Attorneys, PA online or by calling us at (479) 443-0062.

  • Author
  • Recent Posts
Deb Sexton
Latest posts by Deb Sexton (see all)
  • Estate Planning is Essential Whether You Are Married or Not - April 25, 2018
  • Income Tax Basis in Estate Planning – Part 2 - April 23, 2018
  • The Downsizing Generation: How to Handle a Surplus of Stuff When a Loved One Ages - April 18, 2018

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Wilcox Attorneys, PA

DOWNLOAD OUR FREE ESTATE PLANNING WORKSHEET

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

Subscribe to Our Blog

Subscribe to our blog for all the latest estate planning news and updates!

Office Address

Fayetteville
2766 Millennium Drive
Fayetteville, AR 72703
Phone: (479) 443-0062

Office Address

Prairie Grove
1100 Division Street, Suite 4
Prairie Grove, AR 72753
Phone: (479) 846-6026

( By Appointment Only )

Office Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 12:00 PM

Map

map for office
  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

footer-logo

© 2023 American Academy of Estate Planning Attorneys, Inc.