The undersigned hereby assigns all right, title, and interest in and to the following securities to John Doe and Jane Doe, as Trustees of the Doe Family Trust, dated _. A short form of assignment from the settlor to the trustee of the trust should be executed. Unregistered securities (i.e., those in bearer form) present no particular transfer problems, and obviously there are no registration problems. For this reason alone, a settlor may wish to avoid the use of a street name account. It should be noted that stock held in a street name account can be used by the stock broker for its own use, thus exposing the settlor’s assets to greater liability. This is the simplest approach only when the trust maintains sufficient trading activity. If significant transfers of registered securities are anticipated and speed of transfer is critical, it may be preferable to create a separate nominee partnership to hold title to the securities.Īlternatively, if there is considerable trading activity, securities may be held in the broker’s street name account (i.e., the broker will retain the securities in its name). The transfer agent issues new certificates in the name of the trust, as discussed above.Ī trustee may experience delays in receiving new certificates, because of the need for security and the transfer agent’s workload. After completing the necessary documents, a broker or banker arranges to forward the certificates to the transfer agent. A stockbroker or banker can assist the trustee. Stocks and bonds, including all registered securities, should be put in the trust’s name. The terms of the agreement of sale, lease, or other relevant document should be reviewed by an attorney to assure that assignment is permitted. If a nominee partnership is used, a nominee partnership agreement should be prepared in addition to the trust agreement.Īny interest in real estate less than absolute ownership, such as an agreement of sale or a lessee’s interest, may also be assigned to the trust. A nominee partnership is created for the sole purpose of holding the title to trust assets. This may preclude a conveyance to the trustee and necessitate use of a nominee partnership. Real estate located outside the state of Arizona may pose a special problem, because in many cases a corporate trustee (such as a bank) or successor trustee from Arizona will not be empowered to act in the state in which the real estate is located. So long as the deed to the real estate discloses the beneficial owners, it is not necessary to also record the actual trust documents. In nearly all cases, the initial beneficiaries of the trust are also the settlors. The beneficial owners of real estate held in trust are the beneficiaries of the trust. Under Arizona law, a deed to real estate which indicates that a trust owns the real estate must disclose the beneficial owners of the real estate. Including a home and other real estate in the trust requires an attorney to draw up a new deed and have it recorded. The following discussion can serve as a funding checklist. John Doe and Jane Doe, as Trustees of the Doe Family Trust, dated _. Property placed in the trust can be held in the trust’s name: Usually, funding a trust involves changing the legal ownership of property from the settlor’s name to the trustee’s name. Funding a TrustĪfter creating the trust, it is necessary to fund it by identifying assets that the settlor desires to make a part of the trust. To the extent that any of the assets in the settlor’s name are not funded to the trustee prior to his death, they may be subject to a probate administration. The trustee of a trust works only with assets that have been transferred or funded to him in the name of the trust. A secondary benefit of a revocable trust is that the estate will not have to be probated if the settlor (the person creating the trust) transfers all of his assets into the name of the trust.įunding the trust is critical. In most circumstances, a revocable trust will be created primarily for tax and estate planning purposes. As trustee, he will initially be concerned with the funding of his trust. When a person takes this step, he accepts added responsibility. Creating a trust is a significant step toward financial security for many people.
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