The creation of the Trust document is just the beginning of the Trust process. A Gentreo Trust agreement is originally funded with $10.00. However, once you have created your Trust, you need to fund it with whatever other assets you want to be held in Trust. For example, if you want to transfer your bank account into the Trust, you will need to contact your bank to set up an account in the name of the Trust. Similarly, you will need to set up a Trust account for other assets such as stocks and bonds. For real estate, there will have to be a deed transferring the property from your name to the name of the Trust and this will have to be recorded at the registry of deeds. As you see, how you transfer those assets depends upon the type of asset.
What happens if I don’t fund my Trust?
If you don’t fund your Trust (for example, if you do not re-title your assets in the name of your Trust), your Trust will be ineffective. Your Trust only has authority over the assets that are placed (or “funded”) into it. Any assets outside of your Trust will be subject to your Will, if you have one. If you have a “Pour-over Will” like the one Gentreo helps you create when you create your Trust, it makes sure any assets you did not put into your Trust during your lifetime transfer into the Trust upon your death.
Can a person who is not associated with a Trust put money into it?
Anyone can gift the Trust assets.
How do I fund my Trust?
You will need to re-title your assets – such as your real estate or your car(s) – in the name of your Trust. You should also name your Trust as the beneficiary on any payable retirement or other financial accounts, such as your life insurance or 401k.
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This article is for informational purposes only and should not be considered legal advice. Consult with a qualified attorney or estate planning professional for personalized guidance.
