It’s Not Enough to Create a Living Trust: It Has to Be Funded

One of our clients had a recent situation with her aging parents which, unfortunately, is not uncommon. They had been proactive and had created a Living Trust some 20 years earlier, when they were in their 70s, still active and alert. When she went to visit them last winter, they were in their early 90s, and they had become confused and frail. They had made a number of good investments over the course of those 20 years, but they had not transferred those investments into their Living Trust. Their bookkeeping and financial records were a mess, and they didn’t understand the concept of funding their Trust. Fortunately, our client’s brother was able to step in and become Financial Power of Attorney and take care of their financial affairs, which included funding their Trust.

Create your Living Trust, then fund it

Here at California Document Preparers, once we have finalized your Revocable Living Trust, it is time to fund it–the process of transferring your assets into the trust. This process involves changing the legal title of all of your assets in order to conclusively demonstrate that the assets are held in Trust. To transfer your assets into your Living Trust, we prepare deeds for real property, and provide you with information for the transfer of other assets such as bank accounts, insurance polices and investments. 

Once you have executed and notarized your new deed(s), we will have it recorded in the office of the County Recorder in the county where your property is located. California Document Preparers will also prepare a Preliminary Change of Ownership Report (PCOR) for your signature, which we also file for you. This County Assessor’s form will ensure that you avoid transfer tax.

If you have a Living Trust but it hasn’t been updated in years or funded, come in to one of our California Document Preparers three Bay Area locations and we’ll help you with this process.