That means transferring ownership of your assets into the trust before you pass away. A surprising number of Bellevue families have a well-drafted trust sitting in a drawer with nothing actually titled in the trust's name — which means their estate still goes through King County probate court.
What Does "Funding a Trust" Mean?
Funding a trust is the process of changing the legal ownership of your assets from your individual name to the name of your trust. For example, instead of owning your Bellevue home as "John Smith," you retitle it as "John Smith, Trustee of the John Smith Revocable Living Trust dated January 1, 2024." When you die, the asset is already owned by the trust — so it does not go through probate. A Bellevue living trusts attorney should help you with this process, not just hand you a trust document and walk away. If your attorney does not mention funding, that is a red flag.
Real Estate in Washington
If you own a home in Bellevue, Seattle, Kirkland, or anywhere in Washington, you need to record a deed transferring the property into your trust. In Washington, this is typically done with a warranty deed or quitclaim deed to your trust, which is recorded with the county auditor. For King County properties, you will record with the King County Recorder's Office. There may be a small recording fee. If your property has a mortgage, you do not need the lender's permission to transfer it into a revocable trust in Washington — the Garn-St. Germain Depository Institutions Act of 1982 protects this. However, you should confirm with your lender to avoid any issues.
If you own property in another state, such as a vacation home in Oregon, that property also needs to be transferred into the trust or it will require a separate probate in that state. This is one of the most common reasons people set up a living trust in the first place — to avoid out-of-state probate. Compare this with using a will versus a trust in Washington to see why this matters.
Bank Accounts, Investment Accounts, and Retirement
Contact each bank and brokerage to retitle your accounts. Here is the general approach for each asset type:
- Checking and savings accounts: Visit your bank branch in Bellevue or call the bank. Most banks can retitle accounts in-house with a trust certification.
- Brokerage and investment accounts: Your broker (Charles Schwab, Fidelity, Vanguard, etc.) will have a trust retitling form. Submit it along with a copy of your trust certificate.
- Retirement accounts (401k, IRA): Do not retitle retirement accounts into the trust. Instead, update the beneficiary designation to name the trust as a primary or contingent beneficiary, or name individuals directly.
- Life insurance: Update the beneficiary designation on each policy. You can name the trust as beneficiary, or name individuals and let the trust handle other assets.
- Vehicles: Washington State Department of Licensing allows you to title vehicles in the name of your trust. This is optional but helpful for valuable vehicles.
Stock Options, RSUs, and Tech Employee Benefits
Bellevue is home to thousands of Microsoft, Amazon, and other tech employees. If you have unvested stock options or RSUs, these cannot be transferred to a trust until they vest. Once vested, work with your Bellevue estate planning attorney to determine the best strategy — sometimes options are exercised and the shares transferred, and sometimes beneficiary designations on the brokerage account are sufficient. For restricted stock and ESPP shares, the same applies. This is a specialized area and worth getting professional help with. See our cost guide to understand the investment.
Business Interests
If you own an LLC, partnership, or corporation in Washington, your ownership interest should be transferred to the trust. For an LLC, this typically requires amending the operating agreement and executing an assignment of membership interest. For a corporation, you transfer the shares. If your business has co-owners, check the operating agreement or buy-sell agreement — some agreements restrict transfers even to a revocable trust. This is common for Bellevue startups and small businesses.
Frequently Asked Questions
01What happens if I forget to fund an asset into my trust?
Any asset left out of the trust at death may need to go through probate. That is why a properly drafted estate plan includes a pour-over will that sweeps leftover assets into the trust — but those assets still go through probate first, which defeats the purpose. Funding is everything.
02Do I need to fund my trust immediately, or can I do it later?
It is best to fund the trust as soon as possible after signing. Many Bellevue attorneys include funding assistance as part of the estate planning package. If funding is left to you and you procrastinate, the trust may not work when needed.
03Can I still sell or refinance my home if it is in a trust?
Yes. In Washington, you can sell or refinance a property held in a revocable trust. Some lenders may ask you to temporarily remove the property from the trust for refinancing, then deed it back in. Your attorney can help with this.
04Does funding a trust trigger Washington property tax reassessment?
No. Transferring your primary residence to a revocable living trust in Washington does not trigger a property tax reassessment, as long as you remain the beneficial owner. The exemption continues.
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