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Module 7 · Trustee Academy

Trust Funding Fundamentals

How real estate, accounts, business interests, and insurance actually get into a trust — and what happens when they don't.

10 min read·1 sections·1-question quiz

What 'funding' actually means

Funding is the act of changing legal ownership or beneficiary designations so the trust — not you personally — controls the asset. A signed trust document with nothing titled to it is just paper.

Real estate is funded by a recorded deed. Bank, brokerage, and CDs are retitled in the trust's name. Retirement accounts are usually NOT retitled but use beneficiary designations. Life insurance flows by beneficiary form. LLC and closely held shares require an assignment of ownership.

Key takeaway

If the asset still names you personally — and only you — your trust cannot control it at incapacity or death.

Module 7 quiz

Check your understanding

You need 80% to pass. Each question allows up to 2 attempts. If you score below 80%, you'll review the material you missed and retake just those questions.

Question 1

Which best describes 'funding' a trust?