What are the trust funding requirements?
In California, trust funding requirements are steps that must be taken to ensure the trust is legally established and funded. Trusts can be funded in a variety of ways, and the requirements vary depending on the type of trust. Generally, trusts must be created in writing, signed and dated by the trustor, and witnessed by two individuals or a notary. Trusts must also be adequately funded, meaning the trustor must transfer legal ownership of assets to the trust. These assets might include cash, securities, real estate, or personal property. The trustor can also name beneficiaries, who will receive the money in the trust after the trustor’s death. In order to fund the trust, the trustor also must choose a trustee, who will manage and distribute the assets according to the instructions of the trustor. The trustee might be appointed or elected by the other beneficiaries. Trusts may also require additional paperwork, such as taxpayer identification numbers, to be completed by the trustee. Finally, the trust must be registered with the state of California in order for it to be legally recognized.
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