Creating a trust is an important part of your estate plan, but the process doesn’t end with signing the document. To make your trust work the way you want, you must fund it properly. Funding means transferring ownership of your assets into the trust. Without that step, your trust won’t control or protect anything.
Identify which assets belong in your trust
Start by listing everything you own—real estate, bank accounts, investments, vehicles, and valuable personal items. Then, decide which of those assets you want to place in your trust. In Maryland, most people transfer real estate, financial accounts, and life insurance policies into their trusts. Some assets, like retirement accounts, may be better handled with beneficiary designations instead of transfers.
Change ownership or update titles
Once you decide what to include, you’ll need to update ownership records. For real estate, that means preparing and recording a new deed transferring the property to your trust. For financial accounts, you’ll contact your bank or investment firm and ask for their specific forms to retitle the accounts. You may also need to list the trust as a beneficiary on life insurance or other accounts. Each institution has its own process, so it’s important to follow their rules exactly.
Keep records and review your trust regularly
After you’ve moved assets into the trust, keep copies of all transfer documents, account statements, and deeds. These records show that your trust owns the property. You should also review your trust every few years or after major life changes to make sure new assets are added and old information is updated. Regular reviews keep your trust effective and aligned with your goals.
If you forget to transfer assets, those items might have to go through probate, defeating one of the main reasons for creating a trust. Proper funding ensures that your chosen beneficiaries receive their inheritances quickly and privately. Taking the time to fund your trust correctly gives you peace of mind knowing your estate plan will work as intended.