You completed your Estate Plan,
including a Will and Revocable Trust -
Now on to the Titling of Assets into your Trust!

By Dinah Baldwin
Paralegal
Trust Company of Illinois

Estate Plan - It takes time, careful thought and expense to create an Estate Plan.  It’s tempting to stop and celebrate this accomplishment, now that you have worked with your attorney to update your documents.  But even though it feels like you’re “done” once you have signed, dated and notarized your new Will and Revocable Trust, you’re not finished with your estate planning process until you have funded your Revocable Trust.

Why title assets into your trust instead of titling them in your own name? 
Here are a few good reasons:

• Until you have transferred your assets into your trust, the trust provisions you so carefully wrote out may not govern how your wealth would be distributed upon your death,
• Assets outside of your trust may cause your estate to go through the Probate process in court at life’s end.  Probate (settling and administering of an estate in your local court) incurs a cost, a delay of distribution, and public access to your personal information that a properly funded trust would have avoided,
• Transferring your assets into your trust avoids the possibility of a 6-month Probate window, where creditors can file claims against your estate,
• A funded trust can distribute your assets privately - not publicly,
• The language in your trust document is designed by your attorney to protect your wealth as advantageously as possible under the current tax laws and the laws of your state,
• Funding your trust finishes what you started, and makes it easier for your loved ones and heirs,
• And – a properly funded trust makes it easier to take care of your needs should you become disabled.  A Revocable Trust provides an effective way to provide for your health care and maintenance if you should become ill or unable to manage your own affairs.  Upon disability, your trust will have named a Successor Trustee – an individual or a Corporate Trustee, whom you chose to step in for you to manage your finances and pay your bills, according to the instructions you set out in your document.

How to begin the trust funding process? 
It’s useful to start by making a list of your assets and how they are currently titled or owned. 
Once you have completed your list, the type of asset you own determines which method you will use to transfer assets into your trust.  Examples of ways to transfer assets are: 

• Title ownership in the name of your trust (e.g., John Doe Trust dated December 4, 2011),
• Distribute assets via a beneficiary designation form, or
• Prepare a Schedule of Assets (e.g., collectibles or fine jewelry) as part of your trust document, assigning ownership rights.

Who can assist you? 
Your attorney can advise you how to correctly title each type of asset, and should handle any legal changes - such as retitling your house into your trust.  For bank and brokerage accounts, you can work with your banker or broker.  For retirement assets such as an IRA, annuity or pension, definitely work with your attorney to advise you as to the appropriate beneficiary designation.

Trust Company of Illinois serves as Corporate Trustee for many of our clients.  We provide trust and estate administration services, including trust funding advice, resources and guidance to our clients during the process of transferring assets into a trust. 

Please feel free to contact your Relationship Manager to learn more about the services we provide, or contact us directly through our website at info@trustcoil.com.

 TCI Fiduciary Services Team:
 Brandy Harrington, Senior Partner
 Charlene Wilke, Fiduciary Advisor
 Michelle Hall, Trust Associate
 Dinah Baldwin, Paralegal