Quora Answer: What are the Steps for Moving Your Assets to a Trust When Creating a Revocable Living Trust?

The following is my answer to a Quora question: “What are the steps for moving your assets to a trust when creating a revocable living trust?” 

Moving assets over to the trust is a matter of filing with the appropriate authorities, depending on the nature of the asset, that management of said asset is now under the trust.  The ownership does not technically change since a revocable trust is not a distinct legal entity.  We use this in the loosest sense.  This means the liabilities of the settlor and the trust are not distinct from each other legally. 

In the case of bank accounts and bank certificates, the name of the account and the certificates must be amended to reflect ownership by the trust, and management by the trustee.  Alternatively, it may be better to open up a new bank account, and transfer the requisite funds over. 

For shares and bonds in companies and funds, new certificates must be registered reflecting ownership by the trust.  You could do this by asking the company or fund to issue new certificates, if possible.  The new certificates of ownership must correspond to the old ones for audit purposes, especially taxation.  This applies to derivative financial instruments as well as gold certificates, bullion, precious stones and metals with authentication documents, and fine art with appraisal documents. 

When it comes to assets without proof of registration such as some art pieces, artifacts, artifacts, and items such as coin and stamp collections, legal documentation has to be drawn up to assign them to the trust.  These are instruments of assignment. 

For business interests, such as partnerships and other interests, the respective companies have to amend the agreements and new certificates of partnership or ownership must be issued in the name of the trust, managed by the trustee.  For real estate, it is a simple matter of transferring the legal title to the trust.  This also includes the transfer of any associated loans and mortgages.  For insurance policies, it is a matter of assigning ownership to the trust, or making the trust the beneficiary.  The former is preferable to the latter.