Ensuring proper titling and beneficiary designations for assets is very important if you have a Living Trust. Proper ownership and beneficiary designations can prevent problems down the road. Below are some instructions for certain assets when a person has created a Living Trust:
Bank Accounts and Certificates of Deposit
You must contact the institution where the respective account or certificate is held and direct that the account be reissued in the name of your Living Trust. Frequently, the institution will add the date of the Trust after the name of the Trust. This addition is acceptable.
The transfer of the accounts and certificates to the Trust should be done without any loss of interest, interest rate adjustment, or penalty for early surrender. However, if your financial institution has rules to the contrary, you may wish to wait until your Certificate of Deposit is up for renewal and then retitle it. In the alternative, if you do not wish to retitle your account, you may add beneficiary designations to your financial accounts to name your Living Trust as the primary beneficiary to ensure the trust is funded with those assets upon your death.
Motor Vehicles
Any motor vehicles or titled items of personal property which you wish to transfer to the Trust will be conveyed through an assignment of title. The title must be transferred through the Secretary of State’s Office. In the transfer process, please discuss with the transfer agent the cost and verify that new license plates will not be necessary. We recommend that you advise your insurance agent of the transfer of any
assets to the trust.
Life Insurance
Normally, life insurance ownership is not transferred to the Trust. Life insurance payable to a named beneficiary generally does not go through the probate process. However, we often recommend that you name your Living Trust as the primary beneficiary on any life insurance in the event of your death to ensure the proceeds are distributed according to your estate plan.
Common Stock and Other Securities
We recommend that your common stock and securities be transferred to the name of the Trust. If your securities are held in a brokerage account, your broker can assist you in transferring your brokerage account into the name of your Living Trust.
Property and Liability Insurance Policies
In addition, we recommend that you name your Living Trust as an additional insured on all property and liability insurance policies that you may have. If a claim arises for property subject to the insurance policy and owned in your Living Trust, having your Trust named as an insured on the policy will prevent any property or liability insurance gaps.