A common estate planning mistake many people make is not ensuring the trust you have created holds all your assets. Unfortunately, most lawyers simply do not make sure this is properly handled for their clients, so if you’ve worked with any law office other than mines, you need to double check this critical issue. If you do not transfer your assets into your trust, it is an empty shell and does nothing to accomplish the objectives you had in mind when you established it.
Here are the proper procedures for funding your trust:
A new deed in the name of the trust must be drawn and recorded.
Stocks, bonds, mutual funds
To transfer the ownership of these assets into your trust, you need to contact your broker, investment counselor or transfer agent for the proper paperwork and complete those documents as instructed.
You will need to obtain a reissue form from the Federal Reserve Bank and re-title the bonds in the name of the trust.
Contact your broker for the proper forms that will enable the broker to close the existing accounts and transfer the assets into a new trust account.
You will need to send a completed “stock power” form as well as a W-9 form with your tax ID number with the original stock certificates to the company’s transfer agent.
Bank accounts, CDs
New accounts will need to be established in the name of the trust. If your bank cannot transfer CDs until the maturity date, then mark them “in trust for” a beneficiary until the CDs mature and you can transfer them to the trust.
As your partner in planning for the financial security of yourself and your family, I would never let your trust go unfunded. My concern for you doesn’t stop with the signing of any legal documents -- I will always follow up with you to ensure everything has been done properly so you are fully protected.
This article is a service of the Law Office of Keoni Souza, LLC, an estate planning law firm in Honolulu, Hawaii. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Family Wealth Planning Session, ™ during which you will get more financially organized than you’ve ever been before, and make all the best choices for the people you love. You can begin by contacting our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.
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