What to Do After Setting Up a Revocable Living Trust in California
Creating a revocable living trust is a crucial step in protecting your assets and ensuring a smooth transfer to your beneficiaries. However, a trust is only effective if it is properly funded—meaning your assets must be legally transferred into the trust. Additionally, there are other key steps you should take to ensure your trust functions as intended. Below is a checklist of what to do after setting up your revocable living trust in California.
1. Transfer Real Estate into the Trust
If you own real estate, you must legally transfer the title into the name of your trust. This typically involves:
✔ Preparing and recording a Grant Deed with the county recorder’s office.
✔ Completing and submitting a Preliminary Change of Ownership Report (PCOR).
✔ Filing a Claim for Reassessment Exclusion if transferring from individual ownership to a trust to avoid property tax reassessment under Prop 13 (if applicable).
✔ Contacting your mortgage lender (if you have a loan) to confirm the transfer won’t trigger a due-on-sale clause (most lenders allow transfers into revocable trusts).
✔ Updating your homeowner’s insurance policy (see Step 4).
2. Update Financial Accounts and Investments
Your bank accounts and investment accounts need to reflect your trust ownership. Contact your financial institutions to:
✔ Retitle bank accounts (checking, savings, and brokerage) in the name of the trust.
✔ Name the trust as a beneficiary on accounts that cannot be retitled, such as:
Retirement accounts (401(k), IRA, 403(b))
Life insurance policies
Annuities
✔ Provide your trust’s name and trustee information to the financial institution.
✔ Check if additional paperwork is required, such as a Trust Certification or Affidavit of Trust.
3. Update Titles for Other Assets
✔ Vehicles – Some people choose to transfer their car title to the trust, but in California, this may not always be necessary unless the vehicle is highly valuable. Instead, ensure your Transfer on Death (TOD) Beneficiary is updated.
✔ Business Interests – If you own an LLC, corporation, or partnership, update ownership documents to reflect the trust as the owner.
✔ Safe Deposit Boxes – If you have a safe deposit box, update the ownership to the trust or ensure your successor trustee has legal access.
4. Contact Your Homeowner’s Insurance Provider
Once your real estate is transferred into the trust, contact your homeowner’s insurance provider to:
✔ Confirm whether you need to name the trustee as an additional insured party.
✔ Ensure coverage remains intact after the transfer.
✔ Update umbrella policies (if applicable).
For rental properties, landlords may also need to update landlord insurance policies to reflect the trust as the owner.
5. Review Estate Planning Documents
✔ Update your pour-over will – This ensures any assets unintentionally left out of the trust will still be directed into it after your passing.
✔ Review your Power of Attorney – Ensure your designated agent has authority over assets held outside of the trust.
✔ Confirm your Advance Health Care Directive is up to date.
6. Inform Successor Trustees & Beneficiaries
✔ Provide a copy of the trust (or a Trust Certification) to your successor trustee so they are aware of their responsibilities.
✔ Discuss the trust’s provisions with key beneficiaries if you are comfortable doing so.
7. Review and Update Your Trust Regularly
A trust is not a “set-it-and-forget-it” document. You should review your trust every few years or after major life changes, such as:
✔ Buying or selling property
✔ Opening new financial accounts
✔ Getting married or divorced
✔ The birth of new children or grandchildren
✔ The passing of a trustee or beneficiary
Need Help Funding Your Trust?
Properly funding your trust is just as important as creating one. If you need assistance with transferring assets, updating beneficiary designations, or ensuring your trust is legally sound, our firm is here to help.
Contact us today to schedule a consultation and ensure your estate plan is fully implemented.
