How to Transfer a Checking Account Into a Living Trust in Virginia

A living trust, also known as a revocable trust or inter vivos trust, is an estate planning vehicle that allows you to dictate how your assets are managed and distributed, both during your lifetime and after you die.

One of the main advantages of a living trust is that it allows your assets to be transferred to your beneficiaries without going through the probate process after you pass away. Probate is a court-supervised process that can be time-consuming and expensive, and can delay the distribution of your assets to your heirs.

Funding a Living Trust

After you create a living trust, it is important to transfer your assets into the trust. This is referred to as “funding” the trust. Funding a living trust with your assets helps to ensure that those assets avoid probate and are distributed according to your wishes, as set forth in the terms of the trust.

To fund a living trust, you would typically re-title assets, such as real estate and personal property, in the name of the trust. For example, if you own a house, you would need to execute a new deed reflecting the trust as the legal owner.

The process for transferring a checking account into a living trust in Virginia is more involved than it is for other assets. But it can be easily accomplished with the help of an experienced Virginia estate planning attorney.

Transferring a Checking Account Into a Living Trust in Virginia

The problem with transferring a checking account into a living trust in Virginia is that banks don’t allow you to simply re-title a checking account in the name of a living trust. Because of this, you must first open a new checking account in the name of your living trust, then transfer your funds (and transactions) from the original checking account to the new account.

Here are the general steps you will need to follow:

Step 1: Open a New Bank Account in the Name of Your Living Trust

The first step is to open a new bank account in the name of your living trust. You will need to provide the bank with your certification of trust and your Social Security number. This will allow the bank to verify that the trust exists and that you are authorized to open an account in its name.

Step 2: Transfer Funds from Your Individual Account to the Living Trust Account

Next, you will need to transfer funds from your individual checking account to the new account in the name of your living trust. It is important to transfer funds gradually to avoid disrupting any automatic transactions that are set up on your original account. You should also make sure to leave enough funds in your original account to cover any automatic payments until you have successfully transferred them to the new account.

Step 3: Move Automatic Transactions to the New Account

Once you have transferred most of the funds to the new account, you can start moving your automatic transactions to the new account as well. This includes things like utility payments, automated credit card payments, and your Netflix subscription.

Step 4: Transfer the Remaining Funds to the Living Trust Account

Once you have successfully transferred all of your automatic transactions to the new account, you can transfer the remaining funds to the living trust account and cancel your original account.

It is important to note that the process for transferring a checking account into a living trust can vary depending on the bank and other particulars. So it is always a good idea to consult with an experienced estate planning attorney to ensure that the transfer is done right.

Furthermore, if you are transferring a joint checking account, like those held by spouses, the process may be a bit more complicated. In this case, it would be in your best interest to work with an experienced estate planning attorney to ensure that the transfer is executed properly and that your wishes are fully reflected in the transfer.

Contact an Experienced Virginia Estate Planning Lawyer

For more information or for help with transferring a checking account into a living trust in Virginia, call our law firm today to speak with an experienced Virginia estate planning attorney. We are dedicated to helping clients create comprehensive estate plans tailored to their unique needs and circumstances.

Contact us today at (703) 553-2577 or use the contact form to schedule a consultation and take the first step in securing your family’s financial future.

The information on this site is for general informational purposes only. The information presented in this site is not legal advice or a legal opinion. You should seek the advice of legal counsel of your choice before acting upon any of the information in this site.