Setting up a trust is only the first step in protecting your assets and ensuring your estate plan works as intended. To make your trust effective, you need to fund it. That means transferring ownership of your assets into the trust’s name. This process helps avoid probate, keeps your affairs private, and ensures your chosen beneficiaries receive their inheritance efficiently. Funding a trust involves updating titles, revising beneficiary designations, and documenting transfers carefully to maintain control and comply with Minnesota law.

Why Funding a Trust Matters

A trust that isn’t properly funded doesn’t serve its purpose. If assets remain in your name when you pass away, they may still go through probate, even if a trust exists. By funding your trust correctly, you can:

Maintain control over how and when your assets are distributed
Keep your estate out of probate court
Protect privacy and reduce delays
Simplify administration for your trustee and loved ones

When you take the time to transfer ownership properly, you strengthen the foundation of your entire estate plan.

Step 1: Transfer Real Estate into the Trust

Real estate is often the largest asset people include in a trust. To transfer property, you’ll need to:

Prepare and sign a new deed transferring ownership from yourself to the trust.
Record the deed with the county recorder’s office in the property’s county.
Update homeowners’ insurance and mortgage records to reflect the trust’s ownership.
File a new Homestead Application, if applicable.

If your home is mortgaged, your lender should be notified, but most standard transfers to a revocable living trust do not trigger loan issues. I help clients ensure deeds are recorded correctly to avoid title complications later.

Step 2: Retitle Bank and Investment Accounts

Financial accounts such as checking, savings, and brokerage accounts must be retitled in the name of your trust. This typically involves:

Contacting your bank or financial institution
Providing a copy of your trust’s certificate or declaration of trust
Signing new account documents or ownership forms

Some people choose to make their trust the payable-on-death (POD) or transfer-on-death (TOD) beneficiary instead. This approach can be appropriate in certain circumstances, especially when balancing liquidity needs or managing retirement assets.

Step 3: Update Beneficiary Designations

Not every asset can or should be retitled directly into the trust. For accounts such as:

Life insurance policies
IRAs and 401(k)s
Annuities

It’s usually better to update the beneficiary designation forms instead of changing ownership. You can name your trust as the primary or contingent beneficiary, depending on your goals. I often review beneficiary forms with clients to confirm that they align with their estate plan and trust provisions.

Step 4: Transfer Personal Property

Personal belongings such as jewelry, furniture, and artwork can be transferred using an assignment of personal property document. For valuable collections or titled property (like vehicles or boats), a formal title transfer may be required. Documenting these transfers ensures your trustee can manage and distribute your possessions according to your wishes.

Step 5: Keep Records Organized and Updated

After funding your trust, maintain a list of assets and their titles. Whenever you acquire a new asset, such as a bank account, vehicle, or property, consider whether it should be titled in the name of your trust. Regular reviews keep your estate plan effective and prevent assets from falling through the cracks.

Step 6: Seek Professional Guidance When Needed

Even though funding a trust is largely an administrative process, it has legal and tax implications. Working with an attorney ensures that transfers comply with Minnesota’s recording requirements, financial institution policies, and estate planning best practices. I help clients complete these steps accurately so their trusts remain valid and effective.

Protecting Your Efforts with Proper Funding

A trust only works if it’s funded correctly. By retitling assets, updating beneficiary forms, and documenting transfers, you ensure your estate plan functions exactly as intended. If you’re unsure whether your trust is fully funded, I can review your documents and help you complete any missing steps.

Contact Gratz Law & Mediation, PLLC today to schedule a consultation and make sure your trust does what it’s meant to do—protect your assets and your loved ones.