How to Fund a Living Trust in California

Transfer is accomplished by recording a new deed — typically a grant deed or quitclaim deed — transferring title from you individually to yourself as trustee: "[Your Name], as Trustee of the [Trust Name] Trust dated [Date]." The deed must be notarized and recorded with the county recorder where the property sits. Attorney preparation is strongly recommended to avoid title issues.

Transferring a primary residence to a revocable living trust does NOT trigger Proposition 13 reassessment under Revenue and Taxation Code section 62(d). Confirm with counsel for other property types.

Contact each bank in person or by phone. Ask to either re-title the account in the trust name (the account number stays the same) or set the trust as the POD (payable-on-death) beneficiary. Banks typically ask for a certification of trust — a short document your attorney prepares that identifies the trust, the trustees, and their powers, without disclosing the full trust terms. Most banks will not require the full trust document.

Most brokerages allow re-registration of accounts in the trust name without selling underlying securities. Contact the brokerage's estate or trust department and provide a certification of trust. Some brokerages require the full trust document or a portion of it. Expect the process to take two to four weeks.

Transferring an LLC membership interest to a trust typically requires an assignment of membership interest and may require an amendment to the operating agreement to add the trust as a member. Review the existing operating agreement for any transfer restrictions or required consent provisions before proceeding.

S-corporations have strict rules about eligible shareholders. A revocable living trust qualifies as an eligible S-corporation shareholder during the settlor's lifetime. After death, the trust must qualify as a Qualified Subchapter S Trust (QSST) or Electing Small Business Trust (ESBT) to hold S-corp stock. Review with a CPA or attorney before transferring.

Retirement accounts cannot be held in trust without triggering immediate income tax on the entire account balance. Instead, review your beneficiary designations. Naming the trust as beneficiary is sometimes done for estate planning purposes (typically to control distribution pace) but creates complexity under the SECURE Act. Most married clients name the spouse as primary beneficiary and children as contingent.

Do not title retirement accounts in the trust name. Update beneficiary designations separately.

Life insurance policies pass by beneficiary designation, not through the trust. Review the beneficiary designation on each policy. Whether to name the trust or an individual depends on your estate planning goals, your estate tax situation, and the purpose of the insurance. Discuss with your attorney before changing designations.

Transferring vehicles to a trust can complicate auto insurance and creates administrative burden for modest benefit. Most California estate planning attorneys recommend keeping vehicles outside the trust and handling them through an assignment of personal property or a simple small estate affidavit after death, since vehicles rarely trigger probate on their own.

Personal property is typically transferred to the trust by signing an Assignment of Personal Property — a one-page document your attorney prepares that assigns all tangible personal property to the trust. This does not cover items with separate legal title (real estate, vehicles, bank accounts). For high-value items, a specific description or appraisal is recommended.