How to fund your revocable living fund
Here at DAL Law Firm, we assist our clients with their estate planning needs. When people think of estate planning and trusts, there can be a lot of questions, and the way estate planning works differs in different states.
This blog will cover how to fund a Revocable Living Fund, but first, let’s start with an overview of what a Revocable Living Fund is. A revocable living trust is an estate planning document that provides for the disposition of your assets within a revocable living trust instead of a will. One of the main reasons why our clients want a revocable living trust is that it is not required to submit to a probate. However, for a revocable living trust to function, it must actually own the asset. So when we create a revocable real estate credit plan for our clients, we also fund the trust for you at the beginning, based on the assets you own at the time.
Revocable Living Trust Fund financing involves transferring your assets into the trust so that they are owned by the trust and managed according to your instructions. The specific process may vary depending on your jurisdiction and the nature of your assets, but here are general steps to help you understand how to fund a Revocable Living Fund:
- Create a revocable living trustConsulting with an estate planning attorney to establish a revocable neighborhood trust and determine its terms and conditions and beneficiaries. The attorney will draft the necessary legal documents, including a trust agreement.
- Review your assetsCompile a comprehensive list of your assets, including real estate, bank accounts, investments, vehicles, valuable personal property, and any other property or accounts you wish to transfer to the trust.
- Determine the transferable assets: Determine which of your assets can be transferred to the trust. In general, most types of property can be included, but some assets may require specific procedures or documents, such as a Resignation Deed for any property you own, in order to transfer it to the Revocable Living Trust.
- Update beneficiary designationsReview and update beneficiary designations for assets such as life insurance policies, retirement accounts, or pay-on-death (POD) accounts. You may name the trust as the primary or potential beneficiary to ensure that these assets are properly combined with the trust.
- Keep recordsKeep detailed records of all transactions related to the Revocable Living Fund financing. This includes copies of title documents, correspondence with organizations, and any relevant receipts or confirmations.
- Review and update regularlyAs your financial situation evolves, review and update your trust periodically to ensure it remains aligned with your goals. In addition, remember to fund the newly acquired assets by following the appropriate procedures. We advise our clients to review their estate plan every five to ten years, or when an important event occurs in their life (birth, death, marriage or divorce related to any person participating in your estate plan).
It is important to note that the above steps provide a general framework for financing a Revocable Trust Fund, but the process may vary based on your specific circumstances. To ensure proper implementation and compliance, it is highly recommended that you work with an experienced estate planning attorney who can guide you through the process based on your individual needs.
If you’d like to see a video from our attorney Darcel Lobo, you can do so here:
If you need help creating an estate plan, whether you are interested in a will or a revocable living trust, call our office at (206) 408-8158 or visit us online at www.dallawfirm.coM We will be happy to assist you.
Our site is conveniently located in Normandy Park and we offer consultations virtually or in person.
19803 First Avenue S.
Normandy Park, Washington 98148
Tel. (206) 408-8158
P (206) 374-2810
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