[NJ] How do I properly fund a new trust after it’s created including deeds, accounts, and insurance into it?

Lexi, Chatbot

I understand that navigating the process of registering a trust and transferring assets can be quite complex. Can you please share if you are in the process of setting up a new trust or managing an existing one?

Lexi, Chatbot

Are there specific types of assets you are looking to transfer into the trust?

Lexi, Chatbot

Is there anything else the Estate Lawyer should know before I connect you? Rest assured they’ll be able to help with your new trust.

Jon

Hello! I’m Jon, a licensed attorney with over 13 years of experience, here to help. Legal matters can feel overwhelming, but you’re in good hands. I’ll make sure things are clear and guide you toward the best solution for your situation.

1. Can you please let me know which state you're located in?

2. Are you planning to serve as the trustee yourself, or will someone else be acting as trustee for this new trust?

Jon

Thanks for that. Are all the assets you mentioned (house, investment account, life and term insurance policies) solely in your name, or are any jointly owned with someone else?

Jon

And is your primary goal with the trust to avoid probate, manage assets for beneficiaries, or something else?

Jon

Understood! I believe I have all the information I need. Is there anything else you'd like to add before I start working on your answer? If not, I’ll get started right away.

Jon

Got it! I just need a few minutes to put together a complete response for you. It shouldn’t take longer than about 4–5 minutes. Thanks so much for waiting—I appreciate your patience.

Jon

In New Jersey, setting up a trust is less about “registering” it and more about creating the document and then making sure your assets are properly moved into it. A revocable living trust becomes effective once it is drafted and signed. The real work—and benefit—comes from “funding” the trust, which means retitling your property, accounts, and policies so that the trust is their legal owner. Without this step, the trust doesn’t actually protect those assets from probate.

The process has two stages. First is drafting the trust document, which can be done relatively quickly. The second is funding the trust, which takes longer because each asset requires its own paperwork.

For your house, you’ll need a new deed—often a Quitclaim Deed—transferring ownership from you individually to you as trustee of the trust. The deed must be signed, notarized, and filed with the County Clerk where the property is located. If you have a mortgage, federal law prevents the lender from calling the loan due solely because of this transfer, but notifying them is best practice.

For investment accounts, you’ll contact your bank or brokerage to request trust transfer forms and provide a copy of the trust or a Certificate of Trust.

For life or term insurance, the simplest method is changing the beneficiary designation to the trust so the payout avoids probate.

Because all assets are solely in your name, the process will be more straightforward. Working with a New Jersey estate planning attorney is recommended to ensure everything is done correctly.

Funding your trust involves retitling assets from your individual name into the trust, with you as trustee. For real estate, you must prepare and file a new deed with the county. For investment accounts, contact the financial institution to retitle the account. For life insurance, change the beneficiary designation to the trust.

While some steps can be handled on your own, especially accounts and insurance, having a legal professional assist with the deed is strongly recommended. This ensures accuracy and avoids future issues.

Jon

I’m glad the information was helpful. If you need anything else, feel free to reach out. Wishing you a great day!

Jon

Your wife will be the beneficiary of the trust. The trust itself holds the asset, but it does so for the benefit of the person you name—here, your wife. You do not need permission from your mortgage company to transfer your home into a living trust. Under the Garn-St. Germain Depository Institutions Act of 1982, lenders cannot enforce a due-on-sale clause as long as you remain a beneficiary. While not required, notifying the lender is a good practice.

Jon

Generally, you do not need permission from the mortgage company to transfer your home into a revocable living trust if you remain a beneficiary. Federal law prevents lenders from triggering a due-on-sale clause in this situation. You remain responsible for the mortgage and must continue making payments. While permission isn’t required, notifying the lender helps avoid administrative confusion.