The Trust Funding Module is designed to facilitate the transfer of assets from a client (whether an individual or a married couple) to a living trust. This Product Specification describes the documents and features included in the Trust Funding Module.

Trust Funding Checklist

The Trust Funding Module includes a checklist to identify the transfers and other changes that must be made to fully fund the trust. The checklist is populated based on information entered in the intake interview. These interviews work to determine which documents to create. The attorney is also given the option to mark specific items as complete and to make any notes regarding status updates on the transfers.

Trust Funding Deeds

The Trust Funding Module includes deeds to transfer real estate to a trust. All deeds are designed to meet state-level requirements for recording in all 50 U.S. states (based on the State-Specific Considerations described below). The deeds include the following features:

The interview creates the deed based on the U.S. state where the property is located. It also collects information about the county or other recording jurisdiction where deeds are recorded. County information is available through a dropdown list that includes all counties for all U.S. states. If it is required or customary under state law to list the city, township, or recording district in addition to the county information, the attorney is provided with an opportunity to do so.
The interview asks whether an agent under a power of attorney will sign the deed. If so, the agent’s information is added to the notary acknowledgment block and instructions for signing as an agent are included with the assembled deed.
The interview collects the information needed to identify the grantors for legal purposes, which may include one or more individuals, married couples, businesses or organizations, living trusts, or other trusts. For married couples serving as grantor, the interview includes information about community property and homestead laws that may require signature by a spouse that is not listed on the prior deed.
The interview collects the information needed to identify the trust receiving the property, including the name and date of the trust and the names and addresses of the trustees (up to four trustees allowed).
In states that require the deed or a related statement to include information about the trust beneficiaries, the interview collects the required information and adds it to the assembled deed or a related statement.
The interview presents the attorney with information regarding the types of deeds identified by the warranty of title in the selected state (for example, quitclaim deed, special or limited warranty deed, and general warranty deed) and provides guidance on choosing the appropriate warranty of title/deed type for the transfer.
The interview includes customizable reservations and exceptions to the deed to allow the attorney to either accept or modify the language to exclude from the warranty of title. (This option does not appear for quitclaim deeds because quitclaim deeds have no warranty of title.)
The attorney may either enter a legal description in the interview (in which case it is inserted into the body of the assembled deed in the customary double-indented format) or elect to attach the legal description to the deed (in which case the deed comes with a blank Exhibit “A” page that the attorney can later complete by adding the legal description in a word processor or attaching a prior exhibit).
In states that require a derivation clause identifying the prior deed in the chain of title, the interview collects information about the prior deed—including the prior grantor, the prior deed title, the book/page or instrument number, and the recording deed—and outputs the information to the assembled deed.
For states that recognize homestead status and require the deed to identify whether the property being conveyed is homestead property, the interview includes questions regarding homestead language and appropriate language is added to the assembled deed.
If state law requires a title insurance statement stating whether title insurance applies to the transfer and, if so, information about the insurance, the deed collects the title insurance information and outputs it to the assembled deed.
The attorney may select whether to convey the entire property to the trust or a partial interest (and, if conveying a partial interest, specify the interest conveyed).
The user may select whether to assemble the deed as either a PDF or a Microsoft Office (.docx) file. The deed preparation software includes a “Fix formatting errors?” option that scans the names entered into the deed and attempts to correct common capitalization errors.
If the state imposes a transfer tax or similar tax on the transfer of real estate and provides an exemption for property transferred to a living trust, the interview includes the options needed to claim the transfer tax exemption.
For states where it is customary or required to include transfer tax returns (if the transfer is not exempt or to claim an exemption), informational forms or cover sheets along with the deed, the forms are included in fill-in-the-blank format, along with instructions explaining the circumstances in which they should be considered.
Each deed also includes state-specific guidance for signing and filing. This document may be used by the attorney or given to the client as instructions for signing when the attorney delivers the deed.
The interview collects information about the preparer—including, for attorney preparers, the preparer’s bar number—and adds it to the assembled deed at the location where it is required or customary to include it in that state.
If the deed will be returned to someone other than the preparer after recording, the interview allows the attorney to specify a separate “return to” address and adds it to the assembled deed at the location where it is required or customary to include it in that state.
Each assembled deed is designed to meet the font, margin, and formatting requirements of the law of the state where the property is located.
Each deed comes with notary acknowledgment blocks that are state-specific and designed to meet the forms of acknowledgment used in the state where the property is located.

Certificate of Trust

The Certificate of Trust allows the client to disclose necessary information regarding a trust without disclosing private details about the trust and the ultimate disposition of trust assets. It typically lists the date the trust was established, the identity of the trust creator (settlor) and trustee, and the trustee’s power to act on behalf of the trust.

The Certificate of Trust is often recorded in the land records along with the Deed to Trust to provide assurance to third parties (such as title companies) that the trust is valid and that the trustee may act on behalf of the trust. It may also be provided to banks or other depository institutions for the same purpose.

The attorney has the following options when creating a Certificate of Trust:

Identify the trust creator (settlor) and the current and successor trustees of the trust.
Identify the powers granted to the trustees under the trust.
State whether the trust is revocable or irrevocable.
State that the trust has not been amended, revoked, or otherwise terminated and that the trustee’s powers remain in effect.
If the trust names multiple trustees (co-trustees) to act on behalf of the trust, state how joint trustees may act on behalf of the trust.
If the state has adopted the Uniform Directed Trust Act, state whether the trust includes any powers of direction and, if so, provide information regarding the powers of direction.
Identify the manner in which the trustee may take title to assets (by specifying the name to use when transferring assets into the trust).

The Certificate of Trust is designed to meet state-law requirements, including state-law requirements for recording instruments in the land records when the Certificate of Trust is recorded in conjunction with a deed.

Assignment of Business Interests

The Assignment of Business Interests is a transfer document used to transfer closely held partnership or limited liability company interests to a trust. It includes the options needed to identify the interest being transferred and assign it to the living trust.

Assignment of Personal Property

The Assignment of Personal Property is used to transfer tangible personal property to the living trust. It may list each item of personal property specifically or function as a catch-all assignment for all the client’s personal property.

Letter to Financial Institutions

The Letter to Financial Institutions may be provided to banks or brokerage account providers to explain that the trust has been created and provide guidance regarding re-titling the accounts in the name of the trust or naming the trust as the beneficiary of the account. The letters include the account numbers, the name of the trust, the identity of the current trustees, how the account or beneficiary should be titled, and the account numbers for the accounts that should be transferred to the trust. The interview also includes options to attach the Certificate of Trust to the letter.

Trust Funding Memorandum

The Trust Funding Memorandum is provided to the client to explain the importance of trust funding for probate avoidance and to ensure that the estate plan’s objectives are accomplished. The Trust Funding Memorandum is customized to the client’s asset profile and trust information and includes specific guidance regarding transferring each type of asset owned by the client.

State-Specific Considerations

Deed to Trust

What is the term used to refer to the primary territorial division of the state (county, borough, etc.)?
Are any counties divided into judicial or recording districts for deed recording purposes?
Is it required or customary for the deed to state the city (and not just the county) in which the property is located?
Does this state require deeds to state whether the property is in a city or an unincorporated area?
Is it customary or required to list the grantor’s and grantee’s county of residence along with the grantor’s and grantee’s addresses in the vesting language?
Is this a community property state?
Does this state provide a preferred legal status for property that is used as a primary residence (homestead)?
Must a spouse that is not listed on property (non-titled spouse) join in any conveyance of homestead property?
What is the statutory reference or authoritative case that requires non-titled spouses to join in a conveyance of homestead property?
Is it required or customary for deeds in this state to specify the homestead status of the conveyed property (whether it is or isn’t homestead property)?
Does this state have dower, curtsey, or other rights that require a spouse that is not listed on property (non-titled spouse) join in any conveyance of property?
Do dower, curtsey, or other rights apply to all types of property or specific types of property?
What is the statutory reference or authoritative case that requires non-titled spouses to join in a conveyance of property subject to joinder requirements?
Does state law or customary practice require the deed to include the spouse’s name, even if the spouse is not an owner and is not otherwise required to join in the conveyance?
Does this state recognize joint tenancy with right of survivorship?
Is the phrase “as joint tenants with right of survivorship and not as tenants in common” appropriate to designate the form of co-ownership as a joint tenancy with right of survivorship in this state?
Must the grantees sign the deed to create a joint tenancy with right of survivorship?
Must the grantees sign a separate agreement to create a joint tenancy with right of survivorship?
Is the phrase “as tenants in common” appropriate to designate the form of co-ownership as tenants in common in this state?
Enter the phrase used to designate property owned as tenants in common in this state.
Must the grantees sign the deed to create a tenancy in common?
Must the grantees sign a separate agreement to create a tenancy in common?
Does this state recognize tenancy by the entirety?
Are phrases indicating marital status (husband and wife, wife and wife, husband and husband) sufficient to designate the form of co-ownership as tenants by the entirety in this state?
Language required to create tenancy by the entirety
Must the spouses sign a separate agreement to create tenancy by the entirety?
Is community property with right of survivorship recognized in this state?
Does community property in this state automatically include a right of survivorship in the surviving spouse?
Describe the circumstances in which community property includes a right of survivorship.
Is the phrase “as community property with right of survivorship” appropriate to designate the form of co-ownership as community property with right of survivorship?
Enter the phrase used to designate the property as owned as community property with right of survivorship.
Must the grantees sign the deed to create a community property with right of survivorship?
Must the grantees sign a separate agreement to create community property with right of survivorship?
Is the phrase “to A, for her life, with remainder to B” (or equivalent) sufficient to create a life estate?
Must the grantees sign the deed to create a life estate?
Must the grantees sign a separate agreement to create a life estate?
Are enhanced life estate deeds (life estate with powers) used in this state?
Are transfer-on-death deeds (also called beneficiary deeds or deeds upon death) recognized in this state?
Are quitclaim deeds used in this state to convey or release property without a warranty of title?
What title is used in this state for a quitclaim deed?
- Enter the language of conveyance used to create a quitclaim deed from a single grantor.
- Enter the language of conveyance used to create a quitclaim deed from multiple grantors.
Do title insurers in this state prefer a type of deed other than a quitclaim deed to convey property without a warranty of title?
- What title is used in this state for this alternate deed type?
- Statutory reference if authorized by statute.
- Enter the language of conveyance used to create a deed without warranty from a single grantor.
- Enter the language of conveyance used to create a deed without warranty from multiple grantors.
What title is used in this state for a deed that conveys property with a warranty of title that is limited to the time that the grantor owned the property?
- Statutory reference if authorized by statute.
- Enter the language of conveyance used to create a deed that conveys property with a limited warranty of title as described above from a single grantor.
- Enter the language of conveyance used to create a deed that conveys property with a limited warranty of title as described above from multiple grantors.
What title is used in this state for a deed that conveys property with a full warranty of title that covers all time, including the time before the grantor owned the property?
- Statutory reference if authorized by statute.
- Enter the language of conveyance used to create a deed that conveys property with a full warranty of title as described above from a single grantor.
- GWD: Enter the language of conveyance used to create a deed that conveys property with a full warranty of title as described above from multiple grantors.
Must deeds list the beneficiaries of any trust that will be a grantor?
Must deeds list the beneficiaries of any trust that will be a grantee?
Other than designating the trust as the owner in the vesting paragraph (and, if applicable, the answers given above), does this state have any additional requirements for transfers to and from trusts?
Do deed forms customarily use a generic reference (e.g., for valuable consideration) or omit consideration language altogether?
Independently of whether consideration must be stated on the deed, does state law prohibit transfers of real estate by deed without consideration?
Is it customary for some deeds to state nonmonetary consideration?
Does this state allow the deed to list nominal consideration?
Does this state assess a tax on the transfer of real estate?
What does this state call its transfer tax?
What is the transfer tax rate?
If the transfer is exempt from transfer tax, must the deed (or other required document) include a statement of the basis for exemption?
Are transfers to trusts exempt from transfer taxes?
- Enter the language and citation for the exemption for transfers to trusts. Use the suggested format below.
Are transfers pursuant to a divorce order exempt from transfer taxes?
- Enter the language and citation for the exemption for transfers pursuant to a divorce order. Use the suggested format below.
Are transfers without consideration or for low consideration exempt from transfer taxes?
- Enter the language and citation for the exemption for transfers by gift. Use the suggested format below.
List each exemption available in this state (other than the exemption for transfers to trust, in a divorce, or by gift listed above, if applicable).
Is a transfer tax return required?
What title does this state use to refer to the transfer tax return?
Does this state require an informational return setting forth the details of the transfer?
What is the title of the informational return?
What are the circumstances under which an informational return is required?
What are the exemptions from filing an informational return?
Must the exemption for an informational return be stated on the face of the document being filed?
What is the name of the office where deeds are recorded?
What is the name of the record book where deeds are recorded?
What are the recording fees for recording a deed?
What are this state’s font, margin, and other formatting requirements?
Where should the preparer and return-to information be included on the document?
List any information that must be included in the preparer statement other than the name, optional firm name, and address of the person who prepared the deed.
Is it required or customary for the deed to include a property tax number?
What title does this state use to refer to the property tax number?
Where should the property tax number be included in the deed?
Is it required or customary for the deed to include the recording information for the immediately prior deed (if not already included in the legal description)?
Where should the prior recorded deed information (derivation clause) be included in the deed?
Is it required or customary for the deed to include the property address in addition to the legal description?
Where should the property address be included in the deed?
Must deeds include instructions to help the recording clerk identify the location where the deed should be recorded or indexed?
What are the indexing instructions called in this state?
- Statutory Reference for Indexing Instructions
- Where should the indexing instructions be included in the deed?
- What must be included in the indexing instructions?
Must deeds include a title insurance statement?
Where should the title insurance statement be included in the deed?
Must deeds be witnessed?
- In what circumstances must a deed be witnessed?
- How many witnesses must witness the deed?
Does this state require the deed to include the phone numbers of the grantors and grantees?

Certificate of Trust

What is the legal name for a trust certificate in this state?
Does this state require a trust certificate to be filed along with a deed conveying property to a trust?
- Citation for statute or case law requiring trust certificate
What are the requirements for a trust certificate in this state?