How Do I Fund a Revocable Trust?

Bank accounts are funded by adding the trust as a beneficiary — typically through a payable-on-death (POD) designation. The account stays in your name, you use it exactly as before, and at death the funds transfer directly to the trust without probate. Most banks handle this through their trust or estate services department with a copy of the trust certificate.

POD designations are the standard approach because they require no change to your account number, routing number, or debit card. The bank simply has instructions on file for where the funds go at death. Some accounts — particularly CDs and money market accounts — may also support a trust-titled option, but for everyday banking a beneficiary designation accomplishes the same goal with less paperwork.

Non-retirement investment accounts are funded by adding a transfer-on-death (TOD) or beneficiary designation that names the trust. The account remains in your name during your lifetime — you continue buying, selling, and managing holdings normally. At death, the brokerage transfers the assets to the trust without probate.

TOD designations are the most common approach for taxable brokerage accounts. They preserve your cost basis, avoid triggering a taxable event during your lifetime, and keep the account under your Social Security number. The trust’s distribution terms control what happens to the assets after they transfer. Each brokerage has its own form and process for adding a TOD beneficiary.

Real estate is funded by recording a new deed that transfers ownership from your individual name to the trust. The deed type depends on your state — most use a quitclaim or grant deed. The deed must be signed, notarized, and recorded with the county recorder’s office where the property is located.

Transferring your home to a revocable trust does not trigger a property tax reassessment in most states and does not affect your homestead exemption or mortgage. Federal law (the Garn–St. Germain Act) prohibits lenders from calling a loan due when you transfer to a revocable trust where you remain a beneficiary. Real estate is the single most important asset to fund — any property still in your individual name at death goes through probate in the state where it’s located.

Vehicle funding rules vary by state. Some states allow vehicles to be titled directly in the trust’s name. Others offer transfer-on-death (TOD) title designations as an alternative, which keeps the vehicle in your name during your lifetime but transfers it outside of probate at death.

For most families, vehicles are lower-priority funding targets. Many states have simplified probate procedures for vehicles below a certain value, and TOD designations handle the transfer without retitling. Higher-value vehicles, collector cars, and boats are more commonly titled in the trust directly.

Life insurance is not retitled to the trust. Instead, the trust is named as a beneficiary on the policy. This is a beneficiary designation — you are telling the insurance company where to send the proceeds at death, not transferring ownership of the policy itself.

The distinction matters: transferring ownership of a life insurance policy to a trust can have gift and estate tax implications. Naming the trust as beneficiary avoids those issues entirely while still ensuring the proceeds pass outside of probate and are distributed according to the trust’s terms. Most families name their spouse as primary beneficiary and the trust as contingent beneficiary.

Retirement accounts cannot be transferred into a trust during your lifetime. They are funded through beneficiary designations — you name the trust as a beneficiary on the account, and the retirement plan pays out to the trust at death. The account stays in your name and you continue taking distributions normally.

For most married couples, the spouse is the primary beneficiary (required for 401(k) plans, recommended for IRAs) and the trust is the contingent beneficiary. Naming a trust as the primary beneficiary of a retirement account can limit stretch distribution options and may accelerate required minimum distributions. The trust serves as a safety net: if the primary beneficiary predeceases you, the retirement assets still pass according to your trust’s terms instead of the plan’s default rules.

Digital assets — airline miles, hotel points, streaming subscriptions, gaming libraries, domain names, cloud storage, and online accounts — cannot be retitled to a trust or transferred through a beneficiary designation. Most programs have their own policies for what happens when an account holder dies. Some allow transfers to an estate or family member, others forfeit the balance entirely.

The practical step for digital assets is documentation. A trust schedule or separate digital asset inventory lists each account, its value (if applicable), and the program’s transfer or claims process. Your successor trustee needs access credentials or the ability to contact each provider’s estate claims department. Without documentation, these assets are easily overlooked or lost during estate settlement.