Creating a trust is one of the most effective estate planning tools available. Trusts can help families avoid probate, protect beneficiaries, preserve privacy, reduce the risk of disputes, and ensure assets are managed according to your wishes.

However, many people don’t realize one critical fact:

A trust is only effective if it is properly funded.

Trust funding is the process of transferring your assets into your trust so that the trust actually controls them. Without funding, even the best-drafted trust may fail to accomplish its intended goals.

At Ginsburg Law Group, we help individuals and families not only create trusts, but also ensure those trusts are properly funded so their estate plan works exactly as intended.

What Is Trust Funding?

Trust funding means changing the ownership of your assets so that they are legally owned by your trust (or structured to pass into the trust automatically).

In most cases, this involves:

Retitling assets into the name of the trust
Updating beneficiary designations
Assigning personal property to the trust
Coordinating the trust with a will, financial accounts, and insurance policies

Without trust funding, assets may still go through probate, be exposed to court involvement, or pass to unintended beneficiaries.

Why Trust Funding Is So Important

1. Avoiding Probate

One of the biggest advantages of a revocable living trust is avoiding probate.

If assets remain in your individual name at death, probate may still be required — even if you have a trust.

Proper funding ensures assets are owned by the trust, allowing them to transfer smoothly to heirs without court involvement.

2. Ensuring Your Wishes Are Followed

Trusts often contain detailed instructions for:

Distributions to children or grandchildren
Special needs planning
Staggered inheritances
Asset protection provisions
Handling of family businesses or real estate

If assets are not in the trust, those instructions may not apply.

3. Protecting Loved Ones in the Event of Incapacity

If you become incapacitated, a funded trust can allow your successor trustee to manage trust assets without the need for guardianship proceedings.

If assets remain outside the trust, your family may have to rely solely on a power of attorney—or even seek court intervention.

4. Preserving Privacy

Probate is a public court process. Trust administration is typically private.

Funding the trust helps ensure your estate remains confidential, protecting your family’s privacy.

What Assets Should Be Placed Into a Trust?

Not every asset must go into a trust, but many commonly should.

Below is a breakdown of assets that are typically funded into a trust.

Real Estate and Trust Funding

Primary Residence

Your home is often one of the most important assets to place into a trust.

This usually requires:

Preparing a new deed transferring the property into the trust
Recording the deed with the county
Confirming mortgage or insurance requirements

Placing your home in a trust can avoid probate and make transfer easier for your heirs.

Rental Properties and Vacation Homes

Real estate owned in your individual name may require probate in the state where it is located.

If you own property in multiple states, placing those properties into your trust can help avoid multiple probate proceedings.

Bank Accounts and Trust Funding

Bank accounts can be funded into a trust by retitling them in the trust’s name.

Examples include:

Checking accounts
Savings accounts
Money market accounts

This ensures your successor trustee can manage funds immediately if you become incapacitated and allows smooth transfer after death.

However, some individuals choose to keep a small personal checking account outside the trust for simplicity, relying on payable-on-death designations.

Investment Accounts and Brokerage Accounts

Brokerage accounts are commonly transferred into a trust.

This includes:

Stocks and bonds
Mutual funds
Investment portfolios

Most brokerage firms have trust transfer forms and will require a copy of your trust or certification of trust.

Funding these accounts properly is essential to avoid probate and ensure trust distribution terms are followed.

Retirement Accounts (401(k), IRA, Pension Plans)

Retirement accounts are treated differently because they typically pass by beneficiary designation, not by ownership.

In many cases, retirement accounts are not retitled into the trust, but instead coordinated with the trust through beneficiary designations.

Should Your Trust Be the Beneficiary of Your Retirement Accounts?

Sometimes yes — sometimes no.

Naming a trust as beneficiary may be appropriate if:

You have minor children
You want distributions controlled over time
You have a disabled beneficiary
You want creditor protection
You want to prevent a beneficiary from inheriting everything outright

However, naming a trust incorrectly can create:

Tax problems
Accelerated distributions
Loss of favorable “stretch” rules

Retirement account planning must be done carefully and should always be coordinated with an attorney.

Life Insurance Policies

Life insurance also transfers by beneficiary designation.

Often, policy proceeds can be directed to:

A spouse
Children
The trust

Naming a trust as beneficiary can be useful if:

You want proceeds held for minor children
You want creditor protection
You want to avoid beneficiaries receiving large lump sums
You want coordinated distribution with the rest of the estate

Insurance beneficiary designations must be reviewed and updated to avoid unintended outcomes.

Business Interests and Trust Funding

Business owners often overlook trust funding — and it can create major problems.

Ownership interests may include:

LLC membership interests
Corporate shares
Partnership interests
Sole proprietorship assets

Funding business interests into a trust may require:

Updating operating agreements
Updating corporate stock certificates
Preparing assignments of interest
Coordinating buy-sell agreements

Business succession planning should be integrated into trust planning to ensure continuity and avoid disputes.

Vehicles (Cars, Trucks, Boats, RVs)

Vehicles are often not placed into a trust because they typically transfer easily through other means.

However, certain high-value vehicles, boats, or recreational vehicles may be placed into a trust depending on the circumstances.

This varies by state and depends on DMV rules.

Personal Property (Jewelry, Art, Furniture, Collectibles)

Most household personal property is transferred into a trust through a general assignment document.

Higher-value items such as:

Artwork
Firearms
Family heirlooms
Collections
Jewelry

may require specific documentation or written lists referenced in the trust.

If personal property is valuable or sentimental, a detailed plan helps prevent family disputes.

Digital Assets and Trust Funding

Digital assets are becoming increasingly important.

These include:

Online banking access
Cryptocurrency
Digital photo storage
Email accounts
Social media accounts
Online businesses and domain names

Proper planning may require:

Updated powers of attorney
Digital asset authorization provisions
Secure recordkeeping of passwords and access instructions

Digital assets should be coordinated with your trust and estate plan.

Trust Funding Through Beneficiary Designations

Some assets cannot be retitled into the trust, but can still be directed to the trust through beneficiary designations.

Common examples include:

Retirement accounts
Life insurance
Annuities

If the trust is named as beneficiary, the trust must be drafted properly to receive and manage those funds.

Pour-Over Wills: The Backup Plan

Most trust-based estate plans include a pour-over will.

A pour-over will states that any assets left outside the trust at death should be transferred into the trust.

However, a pour-over will does not automatically avoid probate. If the assets are in your individual name, probate may still be required to move them into the trust.

That is why funding the trust during your lifetime is essential.

Common Trust Funding Mistakes

Many trusts fail due to avoidable errors. Common mistakes include:

Not Retitling Real Estate

Clients often assume a trust automatically includes their home. It does not unless a deed is prepared and recorded.

Forgetting to Update Accounts

Bank accounts, brokerage accounts, and investment accounts must be updated with correct ownership.

Incorrect Beneficiary Designations

Naming the wrong beneficiary can override the trust and cause assets to pass outside your plan.

Failing to Coordinate Retirement Planning

Improper trust beneficiary designations can create major tax consequences.

Not Updating After Major Life Events

Marriage, divorce, death of a spouse, or birth of children should trigger a funding review.

Assuming a Power of Attorney Is Enough

A power of attorney may not be sufficient to move assets into a trust later, especially if banks or institutions refuse to accept it.

How to Know If Your Trust Is Properly Funded

A properly funded trust typically includes:

Real estate titled in the name of the trust
Major financial accounts titled in the trust
A plan for retirement accounts and insurance
Updated beneficiary designations
Business interests properly assigned or structured
A written personal property assignment
A coordinated pour-over will as a backup

If these steps are incomplete, your trust may not work as intended.

Do You Need to Fund Your Trust Immediately?

Yes — trust funding should be done as soon as possible after the trust is created.

Waiting increases the risk that:

Something is forgotten
Assets remain outside the trust
Family members face probate
Incapacity prevents proper transfers

Trust funding is not a one-time event. It should be reviewed periodically, especially when new assets are acquired.

Trust Funding and Ongoing Maintenance

Trust funding is not “set it and forget it.”

Your trust should be reviewed whenever you:

Purchase a new home or property
Open new bank or investment accounts
Start a business
Receive an inheritance
Get divorced or remarried
Have new children or grandchildren
Change financial institutions

A periodic review ensures the trust remains up to date and effective.

Trust Funding Checklist

Here is a general trust funding checklist:

Real Estate

Deed prepared and recorded into trust

Bank Accounts

Checking and savings retitled

Investment Accounts

Brokerage accounts retitled

Retirement Accounts

Beneficiary designations reviewed and updated

Life Insurance

Beneficiaries reviewed and coordinated

Business Interests

Membership interests assigned
Agreements updated

Personal Property

Assignment document executed
High-value items listed

Digital Assets

Access plan and authorization included

Estate Plan Coordination

Pour-over will in place
Powers of attorney and healthcare directives updated

Step-by-step trust funding guide

Step 1: Gather your trust + build your asset list

Locate your signed trust (and any amendments) and your Certification/Abstract of Trust (often used instead of the full trust).
Make a list of everything you own, including:

Real estate (primary home, rentals, out-of-state property)
Bank accounts
Brokerage/investment accounts
Retirement accounts
Life insurance
Business interests
Vehicles/boats/RVs
Personal property (jewelry, art, collectibles)
Digital assets/crypto

For each item, note how it’s titled now (individual, joint, LLC, etc.) and how it transfers (title vs beneficiary vs contract).

Step 2: Decide what should be titled in the trust vs. pass by beneficiary

Usually titled into the trust

Real estate
Non-retirement bank accounts (checking/savings)
Non-retirement investment/brokerage accounts
Some business interests (LLC shares, closely held stock) if allowed by governing docs

Usually NOT titled into the trust (use beneficiary designations instead)

401(k), IRA, 403(b), pension plans
HSA (typically via beneficiary)
Many annuities
Life insurance (ownership may stay personal; beneficiaries updated)

Gray-area items

Vehicles (often left outside; depends on state/DMV)
Everyday checking account (some keep a small “operating” checking outside for simplicity)

Step 3: Fund real estate (highest priority)

Goal: record a new deed transferring the property into the trust.

Identify each property and how it’s currently owned (you, you + spouse, LLC, etc.).
Confirm your trust’s correct legal name, e.g.
“Amy Ginsburg, Trustee of the Amy Ginsburg Revocable Trust dated ___”
Prepare the appropriate deed (varies by state/county).
Confirm whether any transfer tax exemptions apply (often do for revocable trusts/spouses—but state-specific).
Record the deed with the county recorder.
Update homeowner’s insurance: ask the carrier to list the trust as additional insured or named insured (as they require).
If there’s a mortgage, keep paying normally; in many cases a revocable trust transfer is permitted, but confirm with counsel if unsure.

✅ Done when: recorded deed is returned and your property records show the trust as owner.

Step 4: Fund bank accounts (checking/savings/money market)

Goal: retitle the account owner to the trust.

Call or visit your bank and ask for their trust account retitling process.
Provide the Certification of Trust (usually preferred) and ID.
Ask them to retitle as: “Trustee(s) of the [Trust Name] dated [date].”
Re-link bill pay, ACH deposits, and autopay items if the account number changes (sometimes it doesn’t).
Keep one small personal account only if you intentionally want it outside the trust.

✅ Done when: monthly statement shows the trust as owner.

Step 5: Fund brokerage/investment accounts (non-retirement)

Goal: move the account into a trust registration.

Contact your broker (Vanguard/Fidelity/Schwab/Edward Jones, etc.).
Request trust registration forms (or “change of account registration”).
Provide Certification of Trust and trustee information.
Confirm whether any holdings need special handling (limited partnerships, alternative investments).
Verify cost basis carries over correctly.

✅ Done when: account title reflects the trust.

Step 6: Coordinate retirement accounts (401(k)/IRA/403(b))

Goal: update beneficiary designations to match your plan.

Pull the current beneficiary designations for each account.
Decide who should inherit:

Spouse outright (common)
Trust (common for minor kids, spendthrift beneficiaries, special needs, second marriages)

If naming a trust, make sure the trust is drafted to receive retirement assets properly (tax rules can be tricky).
Submit updated beneficiary forms and confirm in writing.

✅ Done when: the custodian confirms beneficiary designations on file.

Step 7: Coordinate life insurance

Goal: confirm ownership + update beneficiaries.

Get in-force policy statements for each policy.
Decide whether:

A person is beneficiary (common), or
The trust is beneficiary (common for minor kids, controlled distributions, creditor protection)

File beneficiary changes and obtain written confirmation.
If the trust is beneficiary, make sure the trust name and date are exact.

✅ Done when: insurer sends confirmation of beneficiary update.

Step 8: Transfer business interests (LLC, corporation, partnership)

Goal: assign/retitle ownership interests into the trust only if permitted.

Review governing documents:

Operating agreement (LLC)
Shareholder agreement/bylaws (corporation)
Partnership agreement

Check for restrictions on transfers and required consents.
Prepare an Assignment of Interest (LLC/partnership) or update stock ownership records (corporation).
Update internal company records:

Membership ledger / cap table
Stock certificates (if any)
Registered agent/company minute book

Coordinate with any buy-sell agreement (death/disability triggers).

✅ Done when: company records show the trust (trustee) as owner.

Step 9: Fund personal property

Goal: “sweep” general personal property into the trust.

Sign a General Assignment of Personal Property to the trust.
For high-value items (art, jewelry, collectibles), create a short schedule/list and keep supporting documentation.
If you have firearms, use extra care—state/federal rules can apply.

✅ Done when: assignment is signed and stored with your estate plan.

Step 10: Handle digital assets + crypto

Goal: make access possible and coordinate ownership.

Inventory digital assets: email, cloud storage, domains, online businesses, crypto wallets/exchanges.
Store access information securely (password manager + emergency access).
Ensure your power of attorney/trust documents include digital asset authorization language.
For crypto, consider how keys will transfer (instructions for successor trustee).

✅ Done when: your successor trustee could realistically access/manage the assets if needed.

Step 11: Add the “backup” documents

Even with good funding, you still want:

A pour-over will (catches anything left outside the trust at death)
Updated financial power of attorney
Updated healthcare directive/living will

✅ Done when: all documents are signed and stored together.

Step 12: Confirm funding (the quick audit)

Do this final check:

Real estate: deeds recorded to trust
Bank accounts: titled to trust (or POD intentionally set)
Brokerage: titled to trust
Retirement: beneficiaries confirmed
Life insurance: beneficiaries confirmed
Business interests: assignments/records updated
Personal property: assignment executed

Rule of thumb: If it would require probate to transfer, it probably should be in the trust (or have a proper beneficiary transfer plan).

Simple “Do This First” priority order

Real estate
Non-retirement financial accounts (bank + brokerage)
Beneficiary designations (retirement + life insurance)
Business interests
Personal property + digital assets

Checklist

I created an asset list with current titles
Deeds recorded for all real estate into trust
Bank accounts retitled into trust (or POD intentionally set)
Brokerage accounts retitled into trust
IRA/401(k) beneficiaries reviewed + confirmed
Life insurance beneficiaries reviewed + confirmed
Business interests assigned/retitled where appropriate
Personal property assignment signed
Digital assets/crypto inventory + access plan created
Pour-over will + POA + healthcare docs signed
Annual funding review scheduled (or after major life event)

Practical Realities of Trust Funding: What Actually Happens at Banks and Financial Institutions

Creating the trust is the legal step.

Funding the trust is the logistical step — and this is where clients often encounter delays, confusion, or inconsistent institutional requirements.

Understanding what institutions actually require can save time, frustration, and mistakes.

Part I: Practical Realities Clients Should Expect

1. Every Institution Has Its Own Internal Rules

Even though trust law is state-based, banks and brokerage firms operate under their own compliance policies.

Two branches of the same bank may:

Ask for different documents
Have different interpretations
Require supervisor approval

Clients should expect:

Paperwork delays
Internal compliance review
Requests for additional documentation

This is normal.

2. Institutions Rarely Want the Entire Trust

Most banks and financial institutions do not want a full copy of the trust.

Reasons:

Privacy concerns
Administrative burden
They only need authority confirmation

Instead, they typically request a Certificate (or Abstract) of Trust.

3. Staff Often Are Not Familiar With Trust Law

Front-line staff may:

Be unfamiliar with revocable trusts
Ask incorrect questions
Confuse living trusts with irrevocable trusts

Escalating to:

A branch manager
Trust services department
Legal/compliance department

often resolves issues more efficiently.

4. Retitling Does Not Always Mean Opening a New Account

Sometimes:

The account number stays the same
Only the registration changes

Other times:

A new account must be opened
Assets must be transferred internally

Clients should verify:

Automatic deposits
Bill pay instructions
Linked external accounts

5. Expect Delays for Brokerage Accounts

Brokerage firms often require:

Medallion signature guarantees
Internal trust review
Specific trustee forms

Processing can take:

1–3 weeks
Longer during high-volume periods

6. Mortgaged Real Estate Creates Questions

While many revocable trust transfers are permitted, lenders may:

Ask for notice
Require documentation
Flag the transfer internally

Homeowner’s insurance must also be updated to reflect trust ownership.

Part II: What Institutions Typically Want to See on a Certificate of Trust

A Certificate of Trust (sometimes called Abstract of Trust) is designed to provide necessary information without disclosing private terms.

Most institutions want to confirm the following:

1. Name of the Trust

The exact legal name, such as:

“The Amy Ginsburg Revocable Trust dated January 15, 2026”

The name must match:

The trust document
The titling instructions
Any beneficiary designation forms

Even small errors (wrong date, missing word) can cause rejection.

2. Date of the Trust

They want confirmation of:

The original trust date
Whether the trust has been amended

Some certificates include language such as:
“The trust remains in full force and effect and has not been revoked or amended in any manner that would affect this certification.”

3. Identity of the Trustee(s)

Institutions need to know:

Who currently serves as trustee
Whether co-trustees must act jointly
Whether one trustee can act independently

If co-trustees exist, institutions often ask:

Do both need to sign?
Can either act alone?

Clarity here prevents delays.

4. Trustee Powers

Banks want confirmation that the trustee has authority to:

Open and close accounts
Buy and sell securities
Transfer assets
Borrow funds (sometimes)
Conduct financial transactions

The certificate should affirm that trustees have broad authority under the trust.

5. Revocability Status

They need to know whether the trust is:

Revocable
Irrevocable

For revocable trusts, institutions often require confirmation that:

The grantor is alive
The trust has not been revoked

6. Tax Identification Information

For revocable trusts during the grantor’s lifetime:

Usually uses the grantor’s Social Security number

For irrevocable trusts:

Requires a separate EIN

Institutions will verify tax reporting instructions.

7. Signature Authority

They want to know:

How many trustees must sign
Whether unanimous consent is required
Whether majority rule applies

Ambiguity here causes account rejection.

8. Notarization

Most institutions require:

The Certificate of Trust to be notarized

Some also require:

Trustees to sign in person
A medallion signature guarantee (for securities transfers)

Part III: Common Institutional Requests (That Surprise Clients)

“We Need the Entire Trust”

Sometimes staff incorrectly request the full trust.

Often this can be resolved by:

Escalating to compliance
Explaining state law allows use of a certificate
Providing a properly drafted certificate

However, occasionally institutions will insist on reviewing portions of the trust.

“We Don’t Accept Your Certificate Format”

Some banks have their own trust certification forms.

You may need to:

Complete their internal form
Attach your Certificate of Trust
Provide trustee ID documentation

Medallion Signature Guarantees

Brokerage firms frequently require:

Medallion signature guarantee
Not just notarization

This can only be obtained at certain banks or financial institutions.

Out-of-State Property Issues

If real estate is located in another state:

The deed must comply with that state’s recording rules
Transfer tax exemptions vary
Local counsel may be necessary

Part IV: Practical Tips to Avoid Problems

1. Use the Exact Trust Name Everywhere

Consistency prevents rejection.

2. Bring:

Certification of Trust
Government ID
Copy of trust (in case requested)
EIN confirmation (if applicable)

3. Confirm Insurance After Real Estate Transfers

The trust should be properly listed.

4. Keep a Funding Binder

Maintain:

Recorded deeds
Account confirmation letters
Beneficiary designation confirmations
Business assignment documents

5. Review Annually

Institutions merge, accounts change, assets move. Funding must be maintained.

Part V: Why This Matters

Improper funding can lead to:

Probate despite having a trust
Delays in asset access
Trustee disputes
Rejection of successor trustee authority
Family conflict
Tax reporting errors

The trust document alone does not avoid probate — proper funding does.

Final Thought

Trust funding is both a legal and administrative process. Understanding what financial institutions expect — particularly what must appear on a Certificate of Trust — makes the process smoother and prevents costly mistakes.

Model Certificate of Trust Checklist

A proper Certificate (or Certification) of Trust should typically include the following:

A. Basic Trust Identification

☐ Full legal name of the trust
☐ Date the trust was executed (month/day/year)
☐ State of creation (Pennsylvania, etc.)
☐ Statement that the trust is currently in effect

B. Settlor / Grantor Information

☐ Name of settlor/grantor
☐ Statement that the settlor is living (if required)
☐ Statement that the trust is revocable (if applicable)

C. Trustee Information

☐ Name(s) of current trustee(s)
☐ Address of trustee(s) (some institutions request this)
☐ Statement that the trustee(s) are duly appointed and currently serving

D. Trustee Authority / Powers

☐ Statement confirming trustees have authority to:
- open and maintain bank accounts
- buy/sell investments
- transfer assets
- hold title to real estate
- sign contracts and financial documents
- manage and distribute trust property
☐ Confirmation that no court approval is required for trustee actions
☐ Confirmation trustee may act without beneficiary consent

E. Signature Authority (Very Important)

☐ Clear language stating whether:
- trustees may act independently, OR
- all trustees must act jointly
☐ If co-trustees exist, specify whether either can sign alone
(this is a common funding delay issue)

F. Successor Trustee Provisions (Often Helpful)

☐ Name(s) of successor trustee(s)
☐ Statement that successor trustees have full authority upon triggering event
☐ Description of triggering event (death/incapacity/resignation)

(Note: many certificates avoid naming successor trustees for privacy, but some banks request it.)

G. Tax Identification Information

☐ SSN used for revocable trust during grantor’s lifetime
☐ EIN listed if trust is irrevocable or grantor is deceased
☐ Statement confirming proper tax reporting responsibility

H. Trust Property / Beneficiaries (Usually Not Included)

☐ Confirmation that certificate does NOT disclose beneficiaries
☐ Confirmation that distribution provisions remain private
☐ Confirmation that trust terms not shown do not limit trustee authority

I. Statement of Reliance and Protection

☐ Statement that third parties may rely on the certificate
☐ Statement that certificate is provided pursuant to Pennsylvania law

J. Execution Requirements

☐ Signed by trustee(s)
☐ Notarized
☐ Includes attorney acknowledgment (optional but helpful)

2. “What to Bring to the Bank”

Funding Your Trust: What to Bring to the Bank

When you go to the bank to transfer accounts into your trust, please bring the following:

Required Documents

☐ Your Certificate of Trust / Certification of Trust
☐ A copy of the Trust Signature Page (if available)
☐ A valid photo ID (driver’s license or passport)
☐ Your Social Security number (for revocable trusts)
☐ Your trust’s EIN letter (only if your trust has its own EIN)

Helpful Documents (Recommended)

☐ A copy of the entire trust (some institutions request it)
☐ A list of the accounts you want to retitle (checking/savings/CDs)
☐ Current account statements
☐ Your trust’s exact legal name and date (written out clearly)

What to Tell the Bank

Ask the bank to retitle your account(s) into the trust name as follows:

[Trustee Name], Trustee of the [Trust Name] dated [Trust Date]

Important Notes

If you have joint accounts, the bank may require both owners to sign.
Some banks will open a new account number instead of simply retitling.
If your account number changes, you may need to update:
- direct deposits
- autopay bills
- Zelle/Venmo connections
- linked external transfers

Before You Leave the Bank

☐ Confirm the account title shows the trust as owner
☐ Request a printout or confirmation letter
☐ Confirm online banking access is still working
☐ Confirm checks/debit cards will still function or will be reissued

If the bank has questions, ask them to contact our office.

3. Pennsylvania-Specific Institutional Practice Guide

(PA Practical Guide for Trust Funding & Common Bank/Recorder Issues)

Trust Funding in Pennsylvania: Practical Considerations

Pennsylvania institutions are generally familiar with revocable trusts, but funding issues frequently arise due to internal policies, deed recording requirements, and inheritance tax concerns.

Here are the most common Pennsylvania-specific realities.

A. Pennsylvania Banks Often Require Notarization

Even though Pennsylvania law supports certifications, most banks still require:

notarized certificate of trust
in-person trustee signature

Some banks also request:

proof of address
copy of the trust’s signature page
full trust (rare, but happens)

B. Deeds Must Be Properly Recorded for PA Real Estate

For Pennsylvania real estate transfers into trust, clients should expect:

deed preparation in correct county format
recording with Recorder of Deeds
possible “Statement of Value” requirements depending on county
transfer tax exemption language must be correct

Important: A deed must be recorded in the county where the property is located.

C. Pennsylvania Inheritance Tax Issues

Pennsylvania has an inheritance tax system that often surprises clients.

Even if probate is avoided, Pennsylvania inheritance tax may still apply depending on:

who receives the asset
whether the beneficiary is a spouse, child, sibling, etc.

Funding into a revocable trust does not avoid PA inheritance tax.

D. PA Institutions Often Want “Trust Date” Included in Title

Many Pennsylvania banks will reject account titling if the trust date is missing.

Example:

Correct: “The John Smith Revocable Trust dated January 1, 2024”
Incorrect: “The John Smith Trust”

This is one of the most common processing delays.

E. County Recorder Requirements Vary Widely

Pennsylvania counties differ in:

formatting requirements
recording fees
acceptance of transfer tax exemptions
whether additional forms are required

Clients should expect some counties to be more strict than others.

F. Clean and Green / Farmland Programs

If farmland is enrolled in Clean and Green or other agricultural programs, transferring ownership may require:

review of program requirements
notice to county office
confirmation of continued eligibility

Trust transfers are often permitted but must be handled carefully.

4. Trust Funding Troubleshooting FAQ

Trust Funding FAQ: Common Problems and Solutions

Why is the bank refusing to retitle my account?

Most often it’s because:

the certificate is not notarized
the trust name/date is missing
the bank wants its own form completed
the employee is unfamiliar with trust accounts

Solution: ask to speak with the branch manager or compliance department.

The bank says they need the entire trust. Do I have to provide it?

Not always. Most banks can rely on a Certification of Trust.

However, some institutions will still request:

the full trust, or
specific pages (trustee powers, signature page)

If privacy is a concern, you can provide only the relevant sections.

Can I just add my trust as a “beneficiary” instead of retitling?

Sometimes yes, depending on the asset.

For example:

bank accounts may allow payable-on-death designations
retirement accounts require beneficiary forms
brokerage accounts often allow TOD registration

But for probate avoidance and incapacity planning, retitling into the trust is usually stronger.

The institution says my trust needs an EIN. Is that true?

For a revocable trust while you are alive, it usually uses your SSN.

But some banks insist on an EIN anyway due to internal policy.

Solution: confirm whether the bank truly requires an EIN or whether they can use your SSN.

Do both spouses have to sign if we are co-trustees?

Usually yes, unless the trust explicitly allows either trustee to act independently.

If the certificate is unclear, institutions will require both signatures.

The brokerage is asking for a “medallion signature guarantee.” What is that?

This is a special verification stamp used for securities transfers.

It is not the same as notarization.

Many banks do not offer medallion guarantees unless you are an established customer.

My deed transfer is triggering transfer tax questions. Is that normal?

Yes. Counties often flag deed transfers.

A properly drafted deed should include the correct exemption language when transferring to a revocable trust.

If I forget to fund an asset into the trust, is my trust worthless?

No — but it may cause probate for that asset.

That is why most trust plans include a pour-over will as a backup.

How do I know if the trust is properly funded?

A trust is typically well-funded when:

real estate is titled in the trust
major financial accounts are titled in the trust
beneficiary designations are coordinated
business interests are assigned
pour-over will exists as backup

5. Trust Funding for Elder Law / Incapacity Planning

Trust Funding for Elder Law: Why It Matters Even More

For clients planning for aging, disability, or long-term care, trust funding is not just about probate avoidance.

It’s about ensuring your family can act quickly if you become incapacitated.

A. Incapacity Happens Before Death

In elder law planning, the biggest risk is often incapacity.

If you cannot manage your finances:

bills must still be paid
assets must be managed
care must be arranged
property may need to be sold

A properly funded trust allows a successor trustee to step in without court involvement.

B. Institutions Often Reject Old Powers of Attorney

Even a valid POA may be rejected by banks if:

it is “too old”
it is not on the bank’s preferred form
it lacks gifting or trust authority
it is not notarized

A funded trust reduces reliance on POA acceptance.

C. Nursing Home and Medicaid Considerations

A revocable living trust does not protect assets from Medicaid spend-down rules.

However, it still provides:

streamlined management
incapacity planning
probate avoidance

If Medicaid planning is a goal, the client may need:

an irrevocable Medicaid Asset Protection Trust (MAPT)
careful timing and transfer strategy

Funding must be done correctly to avoid penalties.

D. Watch for Joint Accounts and “Convenience Accounts”

Many seniors add children to accounts “for convenience.”

This can cause:

Medicaid transfer issues
creditor exposure
inheritance disputes
unintended disinheritance of other children

A properly funded trust often provides a cleaner alternative.

E. Real Estate Transfers Must Be Coordinated Carefully

For seniors, transferring the home into trust can raise concerns about:

tax exemptions
mortgage issues
future Medicaid eligibility

A properly drafted plan should coordinate trust funding with long-term care strategy.

F. The #1 Elder Law Funding Goal: Immediate Access

If a client has a stroke tomorrow, the plan should allow:

successor trustee access to accounts
immediate bill payment ability
ability to manage investments
ability to sell property if necessary

This is why banks and brokerage accounts should almost always be funded into the trust.

Why Work With an Attorney?

Trust funding is often more complicated than people expect. Each type of asset has different rules, paperwork requirements, and tax consequences.

A mistake can lead to:

Probate delays
Increased legal costs
Family disputes
Tax problems
Assets passing outside your wishes

Working with an experienced attorney ensures your trust is not only drafted correctly — but actually functions as intended.

Schedule a Trust Funding Review

If you already have a trust but are unsure whether it is properly funded, you are not alone. Many trusts are created but never fully implemented.

At Ginsburg Law Group, we assist clients with:

New trust-based estate planning
Trust funding and retitling guidance
Reviewing beneficiary designations
Updating estate plans after major life changes
Asset protection and long-term care planning strategies

A properly funded trust can provide peace of mind and protect your family for years to come.

Contact our office today to schedule a trust funding review.

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The Ginsburg Law Group, P.C. Blog

Trust Funding: Why It Matters and How to Do It Correctly