Funding Your Living Trust: Best Practices for 2025
A trust is only as good as the assets inside it. Follow this checklist to ensure your living trust actually works:
Real estate – Record a new deed (with a Preliminary Change of Ownership Report) transferring title from you to You, Trustee of the [X] Living Trust.
Bank & brokerage accounts – Open or retitle accounts in the trust’s name; keep the tax ID the same if the trust is still revocable.
Life insurance & annuities – Update beneficiary designations; often the trust is primary for minors or spend-thrift heirs.
Retirement plans (IRA, 401(k)) – Usually do not retitle, but name contingent beneficiaries to preserve stretch options. Missing—or stale—forms are a leading cause of botched plans.
Business interests – Assign LLC or partnership interests to the trust and amend operating agreements if required.
Tangible personal property – Use a general assignment; list high-value items separately.
Update & audit annually. Moves, refinances, new accounts, or refinancing can knock assets out of the trust. Keep a running schedule and store copies in one secure, shareable location.
A fully funded trust avoids probate, simplifies disability management, and delivers inheritance exactly as you intend. Need a funding walkthrough? Shafae Law is here to assist you.