How to Fund a Living Trust in California: Complete Step-by-Step Guide

Published: January 2025 | Updated: January 2025 | 25 min read

Quick Answer: How to Fund a Living Trust

Funding a trust means transferring ownership of your assets (real estate, bank accounts, investments, etc.) from your name into the name of your trust. This is the most critical step in creating a living trust.

Why critical: An unfunded trust is worthless. If assets aren't transferred to your trust, they'll go through probate anyway, defeating the entire purpose of creating the trust.

Shocking statistic: Studies show 40% of living trusts are never properly funded, costing families tens of thousands in unnecessary probate costs.

Good news: Funding a trust takes 2-4 hours for most estates and costs little to nothing (except real estate recording fees of $50-$100).

Table of Contents

What Does "Funding a Trust" Mean?

Funding a trust means transferring legal ownership of your assets from your personal name into the name of your trust.

Before Funding

After Funding

Key point: You're not giving away your assets. You're simply changing how you hold title from your individual name to your name "as trustee" of your trust. You maintain complete control.

You Still Control Everything

After funding your trust, nothing changes in how you use your assets:

The only thing that changes is the legal ownership on paper.

Why Funding Is Critical: The 40% Problem

Here's the harsh truth: 40% of living trusts are never properly funded. This means 40% of people pay $400-$5,000 to create a trust, then their families end up in probate court anyway because the assets were never transferred.

What Happens with an Unfunded Trust?

Scenario: John creates a $2,000 living trust but never transfers his $800,000 house into it.

When John dies:

  1. The trust controls nothing (it's empty)
  2. The house is still in John's individual name
  3. The house must go through probate court
  4. Probate costs: $27,000+ in attorney/executor fees (California statutory fees)
  5. Probate timeline: 12-18 months
  6. Public record: Yes (anyone can see it)
  7. Result: John's family pays $2,000 for the trust + $27,000 for probate = $29,000 total

If John had funded the trust:

  1. House ownership transferred to trust (cost: $75 recording fee)
  2. When John dies, successor trustee takes over
  3. House distributed to beneficiaries in 2-4 weeks
  4. Cost: $0 (no probate)
  5. Timeline: 2-4 weeks
  6. Public record: No
  7. Result: Family saves $27,000 and 12+ months

The Unfunded Trust = Worthless Trust

Critical rule: A living trust only controls the assets you transfer into it. Assets not transferred must go through probate.

Creating a trust without funding it is like:

Bottom line: The funding step is MORE important than creating the trust document itself.

Why Do 40% of Trusts Go Unfunded?

  1. Procrastination: People create the trust, then put off the "boring" funding paperwork
  2. Confusion: They don't understand how to transfer each asset type
  3. Overwhelm: They have too many accounts and feel overwhelmed
  4. Lack of instructions: Attorney creates trust but doesn't provide clear funding guidance
  5. False assumption: They think creating the trust is enough

Don't be part of the 40%. This guide will walk you through every asset type step-by-step.

What Assets to Put in Your Trust

Most assets should be transferred into your living trust. Here's the complete list:

Real Estate (MUST Include)

Why: Real estate is the #1 reason people create trusts. California probate fees are based on the gross value of real estate, so a $800,000 house triggers $27,000+ in probate fees regardless of the mortgage balance.

Bank Accounts (Should Include)

Why: Easy to transfer (free), provides probate avoidance, ensures successor trustee can access funds immediately upon your death or incapacity.

Investment Accounts (Should Include)

Why: Avoids probate, allows immediate access for beneficiaries, no tax consequences for transferring.

Business Interests (Should Include)

Why: Ensures business continuity, avoids probate delays that could harm business operations.

Personal Property (Optional but Recommended)

Why: High-value items should be formally transferred; typical household items can be transferred via "assignment of personal property" (included with your trust).

What Assets NOT to Put in Trust

Some assets should NOT be transferred into your living trust. Instead, use beneficiary designations or leave them in your individual name.

Retirement Accounts (DO NOT Transfer)

Why NOT: Transferring a retirement account to a trust can trigger immediate income taxes on the entire balance (potentially hundreds of thousands of dollars).

What to do instead: Name beneficiaries on the retirement account (see Beneficiary Designations section below).

Life Insurance (DO NOT Transfer)

Why NOT: Life insurance already avoids probate via beneficiary designation. Transferring to trust is unnecessary for most people.

What to do instead: Name beneficiaries on the life insurance policy. Only transfer to trust if you need an Irrevocable Life Insurance Trust (ILIT) for estate tax planning (estates over $13.99M).

Health Savings Accounts (HSAs) - DO NOT Transfer

Why NOT: HSAs lose their tax-advantaged status if owned by a trust.

What to do instead: Name a beneficiary on the HSA.

Vehicles in California (Usually DO NOT Transfer)

Why NOT necessary: California allows vehicles to be transferred to heirs using a simple DMV form (REG 5) without probate, as long as the estate is otherwise administered through a trust.

Exception: High-value or collectible vehicles (worth $100,000+) can be transferred to the trust if desired.

California Vehicle Transfer-on-Death (TOD) Designation

California also allows vehicles to use a "Transfer on Death" beneficiary designation on the vehicle title. This allows the vehicle to pass directly to a named beneficiary without probate.

How to do it: Complete DMV Form REG 5 (Affidavit for Transfer Without Probate) or add TOD beneficiary when renewing registration.

Step-by-Step: How to Transfer Real Estate to Your Trust

Real estate is the most important asset to transfer because it triggers the highest probate fees in California. Here's exactly how to do it:

Step 1: Prepare a New Deed

You need to create a new deed transferring ownership from your name to your trust's name.

Deed type to use: Grant Deed (most common in California) or Quitclaim Deed

Current owner (Grantor): Your name as it appears on current deed
Example: "John Smith and Jane Smith"

New owner (Grantee): Your name(s) as trustee(s) of your trust
Example: "John Smith and Jane Smith, Trustees of the Smith Family Trust dated January 15, 2025"

Property description: Copy the legal description from your current deed (find it on your deed or title insurance policy)

Step 2: Sign the Deed in Front of a Notary

California requires all real estate deeds to be notarized.

Step 3: Complete Preliminary Change of Ownership Report (PCOR)

California requires this form for all property transfers. It tells the county assessor about the ownership change.

Step 4: Complete Documentary Transfer Tax Declaration

Even though transfers to your own trust are exempt from transfer tax, you must file the exemption form.

Step 5: Record the Deed with the County Recorder

This is the final step that makes the transfer official.

Step 6: Notify Your Mortgage Lender and Insurance Company

After recording, notify these entities:

Real Estate Transfer Costs

Item Cost
Notary fee $0-$15 (free at your bank)
County recording fee $50-$100
Documentary transfer tax $0 (exempt for trust transfers)
Property tax reassessment $0 (exempt under Prop 13)
Total per property $50-$115

Out-of-State Property

If you own real estate in other states, you must transfer it according to that state's laws. The process is similar but recording fees and forms vary.

Tip: Some states allow "ancillary trusts" - a separate mini-trust created under that state's law to hold property in that state.

Step-by-Step: How to Transfer Bank Accounts to Your Trust

Bank accounts are the easiest assets to transfer. Most banks handle this regularly and have standard procedures.

Step 1: Gather Required Documents

You'll need:

Do NOT bring the full trust document - banks only need the Certification of Trust.

Step 2: Visit Your Bank in Person

While some banks allow trust transfers by phone or mail, visiting in person is fastest and easiest.

Step 3: Decide: Retitle or Close and Reopen?

Banks use one of two methods:

Method 1: Retitle existing accounts (preferred)

Method 2: Close and reopen accounts

Step 4: Update Automatic Payments and Deposits

If account numbers change, update:

How Accounts Should Be Titled

Before: John Smith and Jane Smith

After: John Smith and Jane Smith, Trustees of the Smith Family Trust dated January 15, 2025

Or shortened version: John Smith and Jane Smith TTEE Smith Family Trust DTD 1/15/2025

Bank Account Transfer: Fast Facts

Question Answer
Cost Free (no fees)
Time required 15-30 minutes at bank
Can I do multiple accounts at once? Yes, transfer all accounts in one visit
What if I bank online only? Call customer service or visit nearest branch
Tax consequences? None - no tax impact
New tax ID? No - use your Social Security Number
Access to accounts? Unchanged - you have full access as trustee

Joint Accounts: Special Consideration

If you have joint accounts with adult children or others (not your spouse), consult an attorney before transferring to trust. Joint accounts with non-spouse co-owners may have gift tax implications or unintended consequences.

Safe approach: Transfer only accounts in your name alone or jointly with your spouse.

Step-by-Step: How to Transfer Investment Accounts to Your Trust

Investment accounts (brokerage accounts, stocks, bonds, mutual funds) are transferred similarly to bank accounts.

Step 1: Contact Your Brokerage Firm

Call your broker or financial advisor and say: "I need to transfer my investment accounts into my living trust."

Major brokerages that handle this regularly:

Step 2: Complete Brokerage Firm's Trust Transfer Forms

Each brokerage has its own forms. They'll ask for:

Step 3: Submit Documents

Submit via:

Step 4: Wait for Processing

Brokerage firms typically take 1-3 weeks to process trust transfers.

Investment Transfer: Important Points

Tax Advantages of Trust Transfers

No capital gains tax: Transferring investments to your revocable living trust does NOT trigger capital gains taxes. This is a change in ownership form, not a sale.

No tax reporting required: You don't report the transfer on your tax return.

Cost basis preserved: The cost basis of your investments remains unchanged.

Example: You bought stock for $10,000 (cost basis). It's now worth $50,000. Transferring to your trust triggers $0 in taxes and your cost basis remains $10,000.

Individual Stocks or Bonds (Physical Certificates)

If you hold physical stock or bond certificates (rare today), you must:

  1. Contact the transfer agent (company that manages stock ownership records)
  2. Complete stock power form (provides authority to transfer)
  3. Submit certificate and form with medallion signature guarantee (special notary, available at banks)
  4. Receive new certificate in trust name (or hold electronically)

Cost: $50-$100 per certificate for medallion signature guarantee and transfer fees

Investment Account Transfer Costs

Item Cost
Brokerage account retitle Free (most firms)
Mutual fund account retitle Free (most firms)
Individual stock certificate transfer $50-$100 (medallion guarantee + transfer fee)
Bond certificate transfer $50-$100 (medallion guarantee + transfer fee)
Capital gains tax $0 (no tax on transfers to trust)

Step-by-Step: How to Transfer Vehicles (Optional in California)

In California, transferring vehicles to your living trust is optional because California provides easier alternatives for vehicle transfers after death.

Option 1: Don't Transfer to Trust (Recommended for Most)

Leave vehicles in your name and use one of these California options after death:

Why this is easier: No need to update registration, insurance, or DMV records during your lifetime.

Option 2: Transfer to Trust (For High-Value Vehicles)

Consider transferring to trust if vehicle is worth $100,000+ or is a collectible/classic car.

Step 1: Complete DMV Form REG 227

Title: "Application for Duplicate or Paperless Title"

Step 2: Visit DMV or Mail Forms

Step 3: Update Insurance

Notify your auto insurance company of the trust ownership. They'll update the named insured to include the trust.

Impact on insurance: None - rates don't change

Vehicles: Bottom Line

Vehicle Value Recommendation
Under $50,000 Leave in your name, use DMV Form REG 5 after death
$50,000-$100,000 Consider Transfer on Death (TOD) beneficiary designation
Over $100,000 or collectible Transfer to trust for probate avoidance

Step-by-Step: How to Transfer Business Interests to Your Trust

If you own a business, transferring business interests to your trust ensures business continuity and avoids probate delays that could harm operations.

LLC Ownership (Limited Liability Company)

Step 1: Review Operating Agreement

Check your LLC's Operating Agreement for transfer restrictions. Some agreements require member approval for transfers.

Step 2: Prepare Assignment of Membership Interest

Create a document transferring your LLC membership interest from your name to your trust.

Step 3: Update LLC Records

Update the LLC's internal records:

Step 4: Notify California Secretary of State (If Required)

Most LLCs don't need to file anything with the state for membership transfers, but check your Operating Agreement.

Corporation Stock (Closely Held)

Step 1: Review Shareholder Agreement and Bylaws

Check for transfer restrictions or required approvals.

Step 2: Prepare Stock Transfer Documents

Step 3: Update Corporate Records

Sole Proprietorship

A sole proprietorship isn't a separate legal entity, so you transfer the individual business assets:

Partnership Interest

  1. Review partnership agreement for transfer restrictions
  2. Obtain partner approval if required
  3. Execute assignment of partnership interest
  4. Update partnership records

S-Corporation Warning

If you have an S-Corporation, be careful. Revocable living trusts CAN be S-Corp shareholders, but only if structured as a "Qualified Subchapter S Trust" (QSST) or "Electing Small Business Trust" (ESBT).

Action required: Consult with a business attorney or CPA before transferring S-Corp stock to ensure continued S-Corp status.

Wrong transfer = loss of S-Corp tax status (potentially costly).

Beneficiary Designations: Retirement Accounts & Life Insurance

Some assets don't need to be (and shouldn't be) transferred to your trust. Instead, they pass to beneficiaries via beneficiary designations.

Retirement Accounts: DO NOT Transfer to Trust

The following accounts should NOT be transferred into your living trust:

Why NOT to Transfer Retirement Accounts

Tax disaster: Transferring a retirement account to a trust (or any non-spouse) is treated as a distribution, triggering:

Example: You have a $500,000 IRA. If you "transfer" it to your trust:

Don't make this mistake.

What to Do Instead: Name Beneficiaries

Step 1: Review Current Beneficiaries

Contact your retirement plan administrator or IRA custodian and ask for your current beneficiary designations.

Step 2: Update Beneficiaries

Complete a new beneficiary designation form naming:

Step 3: Consider Naming Trust as Contingent Beneficiary

Some situations where naming your trust as beneficiary makes sense:

Important: If naming trust as beneficiary, work with an attorney to ensure trust includes proper "conduit" or "accumulation" provisions required for retirement accounts.

Recommended Beneficiary Structure

For married couples:

For single individuals:

Life Insurance: Usually Don't Transfer to Trust

Life insurance already avoids probate via beneficiary designation, so most people don't need to transfer it to their living trust.

When to Transfer Life Insurance to Trust

Transfer life insurance to an Irrevocable Life Insurance Trust (ILIT) only if:

For most people: Keep life insurance in your name and name beneficiaries directly.

Health Savings Accounts (HSAs)

Do NOT transfer to trust. HSAs lose tax benefits if owned by a trust.

What to do: Name beneficiaries on the HSA:

Common Funding Mistakes to Avoid

Mistake #1: Creating Trust But Never Funding It (40% of People)

The Problem: You pay $400-$5,000 for a trust, then never transfer assets into it.

The Result: Your family goes through probate anyway, paying $27,000+ in fees and waiting 12-18 months.

The Fix: Fund your trust within 30 days of creating it. Use the checklist in this guide.

Mistake #2: Transferring Retirement Accounts to Trust

The Problem: You transfer your IRA or 401(k) to your trust.

The Result: Massive tax bill (entire balance taxed immediately) + 10% penalty if under 59½.

The Fix: NEVER transfer retirement accounts. Use beneficiary designations instead.

Mistake #3: Buying New Assets in Your Name (Not Trust Name)

The Problem: You fund your trust in 2025, then buy a new house in 2027 in your personal name (forgetting about the trust).

The Result: New house isn't in trust, must go through probate.

The Fix: When buying new assets, buy them in your trust's name from day one. Tell your real estate agent, escrow officer, or banker "I have a living trust and want this titled in the trust name."

Mistake #4: Forgetting to Update Beneficiary Designations

The Problem: Your trust says "everything to my kids equally," but your $500,000 IRA beneficiary form still lists your ex-spouse from 20 years ago.

The Result: Ex-spouse gets the $500,000 IRA (beneficiary designation controls, not the trust).

The Fix: Review and update ALL beneficiary designations when creating your trust:

Mistake #5: Transferring Only the House (Forgetting Other Assets)

The Problem: You transfer your $600,000 house to trust but forget about your $200,000 in bank accounts and $300,000 investment account.

The Result: House avoids probate, but $500,000 in other assets go through probate (probate fees: $21,000+).

The Fix: Transfer ALL significant assets to trust (except retirement accounts and life insurance). Use the comprehensive checklist below.

Mistake #6: Not Telling Your Spouse or Successor Trustee

The Problem: You create and fund a trust but never tell your spouse or successor trustee where the trust document is located or which assets are in it.

The Result: When you die, family can't find the trust or doesn't know it exists, leading to probate.

The Fix: Tell your spouse and successor trustee:

Mistake #7: Using Wrong Trust Name or Date

The Problem: Your trust is named "Smith Family Trust dated January 15, 2025" but you transfer assets to "Smith Trust" or use the wrong date.

The Result: Assets may not be properly held in trust, causing probate or confusion.

The Fix: Always use the EXACT trust name and date as written in your trust document. Copy it exactly.

Complete Funding Checklist

Real Estate

Primary residence - Prepare deed, get notarized, record with county
Vacation home(s) - Transfer using same deed process
Rental properties - Transfer each property separately
Vacant land - Don't forget undeveloped property
Notify mortgage lender(s) of trust ownership
Update homeowners insurance to include trust name

Bank Accounts

Checking account(s) - Bring Certification of Trust to bank
Savings account(s) - Transfer at same visit
Money market accounts - Include all cash accounts
Certificates of deposit (CDs) - Transfer before maturity if possible
Update automatic payments if account numbers change
Update direct deposits if account numbers change

Investment Accounts

Brokerage account(s) - Contact each firm separately
Individual stocks - Transfer certificates or book-entry shares
Bonds - Transfer certificates or book-entry bonds
Mutual funds - Contact fund company directly
Cryptocurrency accounts - Transfer per exchange's process

Business Interests

LLC membership interests - Prepare assignment, update records
Corporation stock - Transfer certificates, update stock ledger
Partnership interests - Check agreement, execute assignment
Sole proprietorship assets - Transfer individual business assets

Personal Property

Valuable jewelry - List in Assignment of Personal Property
Art and collectibles - Document transfer in writing
Boats and RVs - Transfer title if valuable
General household items - Sign Assignment of Personal Property form

Beneficiary Designations (DO NOT Transfer to Trust)

IRA accounts - Update beneficiaries (not to trust unless special planning)
401(k) accounts - Update beneficiaries
Life insurance - Review and update beneficiaries
HSA (Health Savings Account) - Name beneficiary
Payable-on-death (POD) bank accounts - Update or remove POD if transferring to trust
Transfer-on-death (TOD) investment accounts - Update or remove TOD if transferring to trust

Final Steps

Keep copies of all transfer documents in safe place
Tell spouse/successor trustee where trust document is located
Review funding annually - Check for new assets acquired
Remember to buy future assets in trust name

Timeline: How Long Does Funding Take?

Complete Funding Timeline for Typical California Estate

Task Time Required Total Elapsed Time
Prepare real estate deed 30 minutes Day 1
Get deed notarized 15 minutes Day 1
Complete county forms (PCOR, etc.) 20 minutes Day 1
Mail or submit deed for recording 15 minutes Day 1
County records deed (Processing time) 2-6 weeks
Visit bank to transfer accounts 30 minutes Day 1 or 2
Contact brokerage firms 30 minutes per firm Day 1 or 2
Complete brokerage transfer forms 20 minutes per firm Day 2-3
Brokerage processes transfer (Processing time) 1-3 weeks
Transfer business interests 1-2 hours Day 3-5
Update beneficiary designations 30 minutes Day 1-3
Sign Assignment of Personal Property 5 minutes Day 1

Total Time Investment

Your active time: 2-4 hours total (spread over a few days)

Processing/waiting time: 2-6 weeks (county recording and brokerage transfers)

Total elapsed time: 4-8 weeks until everything is fully funded

Fastest Funding Strategy

To fund your trust in the shortest time:

  1. Day 1: Prepare deed, get notarized, submit for recording, visit bank, complete brokerage forms, update beneficiaries
  2. Day 2-7: Follow up on any incomplete items, transfer business interests
  3. Week 2-6: Wait for county and brokerage processing
  4. Done: Trust fully funded within 6 weeks

The 2-Hour Funding Day

Many California residents complete 90% of funding in a single focused 2-hour session:

Then just wait for processing to complete.

Costs of Funding Your Trust

Good news: Funding your trust costs very little. Here's the complete breakdown:

Real Estate Transfer Costs

Item Cost
Notary fee (deed signature) $0-$15 (free at your bank)
County recording fee $50-$100 per property
Documentary transfer tax $0 (exempt for trust transfers)
Property tax reassessment $0 (exempt under Prop 13)
Subtotal (per property) $50-$115

Bank Account Transfer Costs

Item Cost
Account retitle fee $0 (free at all major banks)
New checks (if account number changes) $0-$30 (optional)
Subtotal $0-$30

Investment Account Transfer Costs

Item Cost
Brokerage account retitle $0 (free at major brokerages)
Stock certificate transfer (if physical) $50-$100 (medallion guarantee + transfer fee)
Capital gains tax on transfer $0 (no tax on trust transfers)
Subtotal $0-$100

Business Interest Transfer Costs

Item Cost
LLC interest assignment $0 (self-prepared)
Stock certificate transfer $0-$50 (internal company records)
Attorney assistance (optional) $500-$1,500 (if needed)
Subtotal $0-$1,500

Total Funding Costs: Typical California Estate

Estate profile: 1 house, 2 bank accounts, 1 brokerage account, no business

Item Cost
Real estate transfer (1 property) $75
Bank accounts (2 accounts) $0
Brokerage account (1 account) $0
Notary fees $0 (free at bank)
Beneficiary designation updates $0
TOTAL COST $75

$75 Investment Saves $27,000+ in Probate

For a typical California estate with an $800,000 house, funding costs about $75 total but saves:

Return on investment: 36,000% ROI

Frequently Asked Questions

What happens if I don't fund my trust?

If you don't transfer assets into your trust, those assets will go through probate when you die, exactly as if you never created a trust. An unfunded trust is worthless. The trust only controls assets you transfer into it.

How long does funding take?

Your active time is 2-4 hours total. Processing time (waiting for county to record deeds and brokerages to process transfers) is 2-6 weeks. Most people complete 90% of funding tasks in a single focused 2-hour session.

What does it cost to fund a trust?

Very little. For most California estates: $50-$100 per property for county recording fees, $0 for bank and investment accounts, $0-$30 for new checks if needed. Total typical cost: $75-$150 for a complete estate.

Do I need an attorney to fund my trust?

No, most people can fund their trust themselves by following this guide. Real estate transfers require preparing a deed and recording it (straightforward). Bank and investment transfers require visiting the bank or calling the brokerage (easy). Attorneys charge $1,500-$3,000+ for funding services you can do yourself.

Can I still use my bank account after transferring to trust?

Yes. You maintain complete control and access. You can deposit, withdraw, write checks, use debit cards, and manage accounts exactly as before. The only difference is the legal ownership name on the account.

Will transferring my house to trust trigger property tax reassessment?

No. California Proposition 13 exempts transfers to revocable living trusts from property tax reassessment. Your property taxes will not increase due to the transfer.

Will transferring my house trigger the "due on sale" clause in my mortgage?

No. Federal law (Garn-St. Germain Act) protects transfers to revocable living trusts from triggering due-on-sale clauses. Your lender cannot call your loan due simply because you transferred to your trust.

Do I need to notify my mortgage lender when I transfer my house?

It's recommended but not legally required. Send your lender a copy of the recorded deed showing the trust transfer. Most lenders simply update their records and take no action.

Should I transfer my IRA or 401(k) to my trust?

Absolutely NOT. Transferring retirement accounts to a trust triggers immediate income tax on the entire account balance (potentially hundreds of thousands of dollars in taxes) plus 10% penalty if under 59½. Instead, name beneficiaries on retirement accounts - they already avoid probate via beneficiary designation.

Should I transfer my life insurance to my trust?

Usually no. Life insurance already avoids probate via beneficiary designation. For most people, naming beneficiaries directly is simpler and achieves the same result. Only transfer life insurance to an Irrevocable Life Insurance Trust (ILIT) if your estate exceeds $13.99M and you need estate tax planning.

What about vehicles - should I transfer them to my trust?

Optional in California. Most California residents leave vehicles in their personal name because California provides easy alternatives (DMV Form REG 5 or Transfer-on-Death designation). Consider transferring only high-value vehicles ($100,000+) or collectible cars.

How do I buy new assets after creating my trust?

Buy new assets directly in your trust's name. Tell the seller, real estate agent, or bank "I have a living trust and want this titled in the trust name." Provide your trust name exactly as written in your trust document. This avoids having to transfer the asset later.

What if I acquire new property after funding my trust?

You must transfer new property to the trust. Many people forget this. If you buy a new house, open a new bank account, or acquire other significant assets, transfer them to the trust promptly using the same methods described in this guide.

Do I need a new tax ID number (EIN) for my trust?

No. Revocable living trusts use your Social Security Number for tax purposes. You don't file a separate tax return and don't need a separate EIN while you're alive. (After you die, the trust becomes irrevocable and requires an EIN, but your successor trustee handles that.)

How do I fund a trust if I live out of state but own California property?

Follow the same process - prepare a deed, get it notarized in your state, and mail it to the California county recorder where the property is located. Some counties accept online submissions. The process is the same whether you're in California or not.

What if my bank or brokerage firm refuses to accept my trust?

This is rare but occasionally happens with smaller institutions. Options: (1) Ask to speak with a supervisor who handles trusts regularly, (2) Provide your Certification of Trust (not the full trust), (3) Have your attorney contact them, (4) If they still refuse, consider moving your accounts to a more trust-friendly institution like Charles Schwab, Fidelity, or Vanguard (all handle trusts routinely).

Can I transfer only part of my assets to the trust?

Yes, but not recommended. You can choose which assets to transfer, but assets NOT transferred will go through probate. Best practice: Transfer all significant assets except retirement accounts and life insurance (which use beneficiary designations).

How often should I review my trust funding?

Review annually. Check: (1) Are all current assets in the trust? (2) Have you acquired new assets that need transferring? (3) Are beneficiary designations current? (4) Have you sold assets that were in the trust? Annual review prevents the common problem of acquiring new assets and forgetting to transfer them.

What is a "pour-over will" and why do I need one?

A pour-over will is a backup safety net included with your trust. It says "any assets I forgot to transfer to my trust should go to the trust when I die." This catches forgotten assets. However, those assets must still go through probate before being distributed to the trust, so it's better to fund properly and not rely on the pour-over will.

Do I need to record my trust document anywhere?

No. Unlike a will (which is filed with probate court), a living trust is NOT recorded or filed anywhere. It remains private. You simply keep the original in a safe place and give copies of the Certification of Trust to banks, brokerages, etc. when transferring assets.

What if my spouse and I have separate trusts?

For separate trusts, transfer your separate property to your trust and joint property to both trusts (or to one trust if you agree). Example: Joint house can be owned by "John Smith, Trustee of John Smith Trust, and Jane Smith, Trustee of Jane Smith Trust" or transferred to one trust if both agree. Consult your estate planning attorney for guidance on separate vs. joint trust funding.

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Disclaimer: This article provides general information about funding California living trusts and should not be considered legal advice. For specific guidance about your estate planning situation, consult with a licensed California estate planning attorney. Recording fees, procedures, and laws are current as of January 2025 and subject to change.

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