When and how assets are transferred is very important. Each asset is transferred individually. How an asset is transferred depends on the requirements of the institution that holds it (e.g. a bank, brokerage firm, insurance company, etc.). You need to check with each institution in order to know how an asset should be transferred. You should know all your options regarding each asset, including payment methods, time restrictions, who can take title, and how title can be taken. Find out the tax ramifications to the beneficiaries and the trust estate when title is transferred. Here are some general guidelines for transferring different types of assets:

Real Property

To transfer real property you need an affidavit of death to remove the deceased's name from the property. You also need to file a quit claim deed and a preliminary change of ownership report to transfer the property into the proper legal title. Transfers from parents to children require the filing of a proposition 58 form to avoid having any property reassessed by the county assessor. Transfers to a surviving spouse do not result in reassessment.

Bank Accounts

Bank accounts can normally be changed by a letter outlining the new proper legal title and giving the tax identification number to be used. You may be required to fill out a new signature card and to bring a copy of the articles of trust naming the successor trustee and defining his or her powers.

Brokerage Accounts

The requirements of each brokerage firm are different; however, a brokerage firm will most likely require a letter outlining the proper legal title, a copy of the articles of trust, a certification of trust by the attorney, and the tax identification number of the successor trustee. Also, an affidavit of domicile is required to transfer title.

Stocks Stocks that are individually held must be returned to be reissued with a new title. Have your broker handle the transfer or contact the transfer agent for each security you own. It is easier to simply open an account in the name of the trust at your broker's office and deposit all of your securities into that account.

Insurance Policies

Insurance companies have their own claimant or change of beneficiary designation forms. Once you notify the company in writing or by telephone of the trustor’s death, the claims process will begin. The company will send you a letter outlying the requirements and the necessary forms to process the claims. This might include providing a certified Certificate of Death and a copy of the articles of trust.

Retirement Accounts (IRA's, 401(k)'s, Keogh's, Tax Deferred Annuities)

Transferring title of retirement accounts will have an income tax impact. Check with the individual institution that is the custodian of the account for your options and the amount subject to income tax. Do not order any distribution or transfers until you have met with your attorney and/or accountant for options and analysis.

U.S. Treasury Securities (Bills, Notes, Bonds, U.S. Savings Bonds)

The Federal Reserve Bank has forms with which to change the name on your securities. You must obtain a Medallion signature guarantee or have your signature certified by an officer in a banking institution. This can be done at any credit union, brokerage firm, or some banks. If you have questions regarding getting a Gold Medallion signature guarantee, please contact our office for more information.

Remember that every estate is unique, with its own issues to be settled. This booklet is an overview of the most common estate administration issues; it should not be used without consulting an attorney. At the time of the death of a trustor, the Successor Trustee is entitled to an initial consultation with one of our attorneys at no charge or obligation. We strongly encourage you to take advantage of this opportunity to discuss your individual estate administration.