How to Fund Bank and Investment Accounts into a Trust

Funding bank accounts and investment or brokerage accounts into your Revocable Living Trust can be easy or complicated depending upon the rules followed by the institutions that hold your accounts. Some institutions will simply change the name on your account from your individual name into the name of your trust, while others will require you to close the original account and open a new one in the name of your trust. Suffice it to say, however, that regardless of the rules your institution follows, it is important to fund your bank and investment accounts into your trust in order to properly plan for disability and avoid probate.

Here are the general steps to follow when funding bank accounts and investment accounts:

1. Write a Letter of Instruction - Write a letter of instruction to your institution which requests the retitling of your account from your name into the name of your trust. Include your account number, the name of your trust, your Social Security Number, your mailing and email addresses and your phone number.
   
   
2. Deliver Your Letter of Instruction - If possible, hand deliver your Letter of Instruction to your bank or financial advisor. Take your trust documents with you because inevitably someone will ask to see your trust agreement. If you can't hand deliver the letter, mail it directly to the bank branch where you opened your account or to your financial advisor. Include a copy of your Affidavit or Memorandum of Trust, or, if you don't have one of these documents, the first page and signature pages of the trust agreement.
   
   
3. Complete and Return All Required Documents - Fill out and return all documents required by your institution. These documents could include new signature cards, new account forms, Trustee affidavits, and other trust account forms.
   
   
4. Confirm Transfer of the Account - Follow up by phone or mail to insure that the retitling of the account into your trust has been completed. You should also check your account statements to verify that the name of your trust has been properly listed in place of your individual name. Common abbreviations to look for include: "John Doe, TTEE, John Doe TR dtd 1/1/08;" or "John Doe, TTE, John Doe Trust UAD 1/1/08."
   
   
5. Place Verification Documentation with Your Trust Agreement - Place documentation with your trust agreement which verifies the funding of the bank or investment account into your trust. This could include an actual letter of verification from your bank or financial advisor or an account statement that lists the name of your trust.