Trust Funding 101: Titling Assets vs. Naming Your Trust as Beneficiary
When people create a revocable living trust, one of the most common questions we hear is:
“How do I put my assets into my trust?”
The answer isn’t always as simple as retitling everything. In fact, there are two primary ways assets can be connected to a trust and understanding the difference is key to building a plan that actually works for your family.
Two Ways Assets Work with a Trust
1. Titling Assets in the Name of the Trust
This means changing ownership so the trust becomes the legal owner of the asset.
Examples:
Bank accounts titled in the name of your trust
Brokerage accounts owned by the trust
Real estate deeded into the trust
Pros:
Asset is clearly owned by the trust
Avoids probate at death
Trustee can manage the asset immediately if you become incapacitated
Cons:
Requires paperwork and coordination
Can complicate refinancing or selling property
May have unintended consequences for mortgaged real estate
2. Naming the Trust as a Beneficiary
This means you keep ownership during your lifetime, but the trust receives the asset upon your death.
Examples:
Retirement accounts naming the trust as beneficiary
Life insurance payable to the trust
Real estate with a Transfer on Death (TOD) designation naming the trust
Pros:
Ownership stays in your individual name during life
Avoids probate
Often simpler and more flexible
No disruption to existing title or financing
Cons:
Asset does not automatically move into the trust during lifetime (unless incapacity planning addresses it)
Requires beneficiary designations to be kept up to date
There Is No One-Size-Fits-All Approach
Some assets are best titled in the trust. Some are better handled through beneficiary designations. And many plans use a combination of both.
The “right” answer depends on:
The type of asset
Whether it’s mortgaged
Tax considerations
Your family structure
How much flexibility you want during your lifetime
How We Help Our Clients
Creating a trust is only part of the process. Funding it correctly is what makes it effective.
When our firm prepares a trust, we don’t just hand over documents and send you on your way. We provide:
Detailed funding instructions
Guidance on which assets should be titled vs. named as beneficiary
Support for Transfer on Death designations
A practical, step-by-step approach tailored to your family’s needs
Our goal is to help you build a plan that works not just legally, but realistically, today and in the future.
The Bottom Line on Trust Funding
A trust only works if it’s funded properly, and funding doesn’t always mean retitling everything.
In many cases, naming your trust as beneficiary is simpler, safer, and more flexible than transferring title outright.
If you’re not sure whether your trust is funded correctly, or you’re wondering how best to connect your assets to your trust, we’re happy to help guide you through the process. Contact us today.
