Moving Property Into and Out of a Living Trust


One of the advantages of a revocable living trust is that, during your lifetime, you can add assets to the trust or remove assets from the trust, as best suits your needs and wishes. For example, if you have conveyed your home into your living trust, but intend to sell your home and relocate, you may convey or sell your current home out of your trust. When you purchase your new home, you may acquire it through your trust or transfer it into your trust.

The person who creates a trust is known as the settler, grantor, or trustor. The person designated within a trust to manage its assets is known as the trustee.

Transferring Assets Into a Living Trust

Something you must remember when creating a trust is that the trust holds no assets unless and until you transfer assets into the trust. If you forget to fund your trust, the trust will not hold any assets and you will gain no benefit from the trust. You can include a provision in your will that transfers assets into your trust as part of the probate process, but if that is the only means by which you fund your trust you lose many of the advantages of creating the trust during your lifetime.

Transferring real property into a trust requires that you draft and execute a deed. Similarly, to convey titled property into a trust, such as a motor vehicle or certain boats, title must be transferred through the titling agency. However, for items of personal property, the conveyance is a simple matter that can be accomplished through a document such as this:

Assignment of Property to Trust

I, Settlor's Name of the Trust Name Revocable Living Trust, as grantor, assign to Trustee, and his/hersuccessors, as trustee of the Trust Name Revocable Living Trust, all items of tangible personal property described in the following list:

 
 
 

Dated: Date
Settlor's Signature, Settlor
Settlor's Typed Name

Notarization

State of State,
County of County,

On Date, Settlor's Name appeared before me and proved to my satisfaction that he / she is the person whose name is subscribed to this Assignment of Property to Trust, and acknowledged the due execution of the foregoing instrument.
Notary's Signature
Notary’s Name
Notary Public, State of State, County of County
My commission expires Expiration Date.

Transferring Assets Out of a Living Trust

Once assets are transferred into a revocable living trust, they may be transferred out by the trustee. During your lifetime, assuming you do not become incapacitated, that will normally be you. As with transfers into a trust, real property must be conveyed back out by deed, and titled property will require a transfer of title. However, for most personal property the transfer is once again achievable with a simple form:

Assignment of Property From Trust

I, Trustee, of the Trust Name Revocable Living Trust, as trustee, assign to Settlor in his capacity as an individual, without consideration, all items of tangible personal property described in the following list:

 
 
 

Dated: Date
Trustee's Signature, Settlor
Trustee's Typed Name

Notarization

State of State,
County of County,

On Date, Settlor's Name appeared before me and proved to my satisfaction that he / she is the person whose name is subscribed to this Assignment of Property from Trust, and acknowledged the due execution of the foregoing instrument.
Notary's Signature
Notary’s Name
Notary Public, State of State, County of County
My commission expires Expiration Date.

Copyright © 2016 Aaron Larson, All rights reserved. No portion of this article may be reproduced without the express written permission of the copyright holder. If you use a quotation, excerpt or paraphrase of this article, except as otherwise authorized in writing by the author of the article you must cite this article as a source for your work and include a link back to the original article from any online materials that incorporate or are derived from the content of this article.

This article was last reviewed or amended on Sep 20, 2016.