How Should I Fund an Investment or Bank Account in My Name Into a Trust?

When you are moving assets into a revocable living trust, it’s important to remember that the guidance of an estate planning attorney can be instrumental in making this process easier.

Funding brokerage investment or bank accounts into your revocable living trust could be complicated or easy depending on the specific rules of the institutions involved, so you’ll want to investigate that first.

Some financial institutions, for example, will make it as simple as changing the name on the account from your individual name to that of you listed as the trustee. Others might require that the original account be closed out and a new one be opened in the name of the trust. Regardless of the specific rules for your institution and what it demands for you to jump through, it is critical that you fund investments and bank accounts into the trust appropriately to avoid probate and to plan for other issues.

In addition to appointing yourself as the primary trustee of this estate planning strategy, you will want to name a successor trustee. This is the person that you name to step in and to take over management of your trust if you were to become mentally incapacitated.

The steps for funding an account into your revocable living trust include:

  • Write a letter of instruction.
  • Hand deliver your letter of instruction to a financial advisor or a bank.
  • Complete and return all required documents.
  • Confirm the formal transfer of the account.

For more support with these complex estate planning issues, schedule a consultation with an attorney in Virginia Beach.  

 

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