Video Transcript Below
Introduction
00:00:00
Francisco Sirvent: Welcome, welcome everybody. Sorry about that—system issues always giving us fun. Welcome. I’m really excited for today again. Back with my partner, Michelle Dexter, for a topic that everybody wants to avoid… except you guys. Congratulations—you are the winners of the real prize, because this is something that, when I first started in this industry, I was really surprised to hear that a lot of places don’t even talk about, don’t even know about.
In fact, I just had a phone call from someone. I got on the phone with him, and he said, “I just read an article on your page about funding your trust.” He’s like, “What is that?”
So I gave him the two-minute version. And he said, “Okay, I need to break it to you. I’m a lawyer here in town. I had a partner of mine do my trust like five years ago, and they never told me about funding my trust.”
00:14:07 — Why Funding Matters
Francisco Sirvent: Are you telling me if my house and my bank accounts and my investments are not owned by my trust, that they are still going to go through probate?
I said, “Yeah, they are.”
And he was fuming. Furious. And I just hear it over and over again—people don’t talk about this, about how important it is to fund your trust.
So you guys are here to get the nitty-gritty details on how to actually do that for various different types of accounts, investments, real estate—everything. Michelle’s going to blaze through it.
We are recording this so that we can share it with folks who weren’t able to make it today. And we’ve also built our process to get these posted onto our YouTube channel so that we can share these publicly, wide and large.
So please, don’t share anything in the chat or, when we open the Q&A, anything that you don’t want to share. Obviously, your private information we want to keep private. But if you have a question, make it generic so that it can benefit everybody and you can get your questions answered.
00:15:14 — Next Week’s Webinar
Francisco Sirvent: We will also be sharing the link to next week’s webinar. I invite you guys to join that. That is with Carie Gutman, who’s a CFP with Lifestyle Planning.
In that one, he’s actually going to walk through a couple different annuity statements to show you how to read an annuity statement. So if you have an annuity, think you do, or you’re not sure if you do—that one’s going to be really helpful and practical as well.
But with that, I want to thank Michelle for putting this together and sharing her wisdom with you guys. I hand it over to Michelle Dexter.
Michelle Dexter: Thanks, Francisco.
Francisco Sirvent: Off you go.
00:16:03 — Getting Started with Funding
Michelle Dexter: I’m so excited. Thank you all for giving me your time this afternoon. I see a lot of familiar faces and a lot of new people, so that is fabulous.
We are firm believers that you have to hear some of this stuff about seven times for it to really start to sink in and for you to become familiar with it. So kudos to you for taking some time today to do that.
When I first started here—I’m actually about to celebrate my eight-year anniversary at Keystone—we would do people’s trusts, talk to them about funding, send them on their way… and then they’d come back a year later to review. We’d say, “How did funding go?” And they’d look at us like deer in headlights, like we just said something they’d never heard before.
So over the years, we have tried to improve our process to help our clients understand what funding is, how to accomplish it, and how to constantly review it. Because even though you may have done it in the beginning, most of us change out assets, move bank accounts, all those types of things.
So while creating your trust feels like a big accomplishment—you picked your agents, decided on your beneficiaries, outlined your vision for distributions—there’s still work that lies ahead.
00:16:59 — Why Review Funding Regularly
Michelle Dexter: For those of you that have a trust, you know some of what that looks like. It’s always good each year to review your assets and make sure they’re funded properly.
For those of you that don’t have a trust and are thinking, “I don’t understand this funding stuff, that’s why I don’t have a trust”—hopefully we’ll help you today to understand.
We know people can be confused about funding and are often hesitant to create an estate plan because of it. They just don’t know how this will disrupt their management of finances.
So hopefully we’ll cover that.
Funding, that term, is essentially converting your accounts from your name into the name of the trust.
So, my checking account got changed from “Michelle Dexter” to “Michelle Dexter as trustee for the Michelle Dexter Trust.”
I’m still managing it—I’m the trustee of my trust—so I still manage my assets. My bank account is still using my Social Security number. We’ll talk about all those things.
But the actual act of funding is not changing where you bank. It’s not changing how you manage your assets. It’s not changing a whole lot. It’s just updating the institutions that maintain those accounts with the current information, so they know it’s no longer in just my name.
If something happens to me, we don’t have to go to a conservatorship or probate. It’s in my trust, and if something happens to me, the next trustee steps up.
00:17:52 — What Funding Actually Does
Michelle Dexter:
My bank account is still using my Social Security number. We’ll talk about all those things, but the actual act of funding is not changing where you bank. It’s not changing how you manage your assets. It’s not changing a whole lot.
It’s just updating the people that maintain those accounts with the current information so that they know it’s no longer in Michelle Dexter’s name. If something happens to Michelle Dexter, we don’t have to go to a conservatorship or probate. It’s in the Michelle Dexter Trust, and if something happens to me, next man up—the next trustee—steps in.
So, when you’re converting your accounts into the name of the trust, it’s not triggering any kind of taxes, and you shouldn’t generally have to change where you hold your accounts, who manages them for you, or how you invest them.
I want to start with the biggest asset that most of us have, which is our real property.
00:18:47 — Real Estate and Mortgages
Michelle Dexter:
When we have a home or a piece of land or a second home, there’s two paths we can go down with funding our home into our trust.
The first path is where most of us have a mortgage. In that case, what we do is a beneficiary deed. That says if I pass away, the property goes into my trust.
Now, if you’re a married couple, it might say: if one of us passes, it goes to the survivor, and then when we both pass, it goes into the trust. At that point in time, your successor trustee can take care of the mortgage—whether that’s selling the house, paying off the loan, or trying to get somebody to assume it.
With the beneficiary deed, we are avoiding probate on the house and making sure it passes to the trust smoothly.
00:19:44 — Why Use a Beneficiary Deed
Michelle Dexter:
We don’t want the mortgage companies to call the loan. A lot of times our loans have provisions that say, “If you transfer it out of your name, we can call the loan.”
Technically they’re not supposed to when it’s transferred into your own trust, but most of us don’t want that call saying they’re bumping our 3% mortgage up to 7 or 8%.
So, we use the beneficiary deed. That document gets recorded with the county recorder’s office. You can change it later if you want to, but you’re still the owner during your lifetime.
If you became incapacitated and needed to sell, we’d rely on the power of attorney to sell it in your name. Title companies usually work with that fine.
00:20:38 — Why You Don’t See It on the Tax Records
Michelle Dexter:
Sometimes clients say, “I checked the tax assessor’s office and the house is still in my name—how come it’s not funded?”
That’s because the beneficiary deed doesn’t show up on tax statements. It shows up in your binder and at the county recorder’s office.
If you don’t have a mortgage, we can title the house directly into the name of the trust.
When you do that, make sure you add the trust as an additional insured on your homeowner’s insurance. If something happens—say the house burns down—your successor trustee needs to file the claim. If the trust isn’t listed, the insurance company could require probate just to pay the claim.
00:21:33 — Watch Out for Loans Later
Michelle Dexter:
Here’s something else: let’s say you own your house outright, and we put it into your trust. A few years later, you decide, “I want to remodel or put in a pool,” so you take out a loan.
The lender may require the property to be back in your personal name before they’ll loan. They pull it out of the trust.
That’s not terrible in itself, but the problem is lenders never remind you to put it back into the trust—or at least add a beneficiary deed again.
So, that’s why we want you to review documents annually. A refinance or home equity loan might have unfunded your house without you realizing it.
00:23:18 — Title Fraud Alerts
Michelle Dexter:
For those of you in Maricopa County, there’s a title alert system you can sign up for. It notifies you if there are changes to the title of your property—great fraud prevention.
I don’t know if other counties do this, but check. It’s definitely worth it.
So, that’s basically funding your house in a nutshell: either a deed into the trust or a beneficiary deed.
00:24:24 — Personal Property
Michelle Dexter:
The next concern is personal property: furniture, jewelry, heirlooms. These don’t have titles or accounts attached to them.
That’s where we use an assignment of personal property, which says all of those things are considered trust assets.
But—if you have special items, heirlooms, or valuables—write them down or take pictures and put them in your binder. Don’t rely on memory.
Also, you may have multiple successor trustees. Instead of three people trying to remember what’s important, put it in writing. For example: “This diamond engagement ring is real. Everything else is costume jewelry.”
00:25:23 — Bank Accounts
Michelle Dexter:
Next big category: bank accounts. Checking, savings, etc. Ideally, these are titled in the name of the trust.
That way, if you’re incapacitated, we don’t need a power of attorney. And when you pass, we don’t need probate.
Some big banks—Wells Fargo, Bank of America—let you convert accounts to your trust without changing account numbers. That’s ideal, because you keep your automatic deposits and withdrawals in place.
Chase, however, requires a new account number when you switch to the trust. That creates a huge hassle if you’ve got automatic transactions.
So, in those cases, I tell clients: at least name the trust as the payable on death (POD) beneficiary. That way, at death, the account goes into the trust without probate.
00:27:21 — Powers of Attorney and “Stale” Documents
Michelle Dexter:
Here’s the issue: if the account stays in your name, we’re relying on a financial power of attorney if you’re incapacitated.
And banks don’t love powers of attorney. They can reject them, and one excuse they use is that the document is “stale.”
Rule of thumb: banks consider it stale after 5 years. Recently, some say 2 years.
So, if you’re showing signs of incapacity, have a major health issue, or you’ll be out of the country, it’s smart to review and update your power of attorney.
00:28:17 — USAA and Online Accounts
Michelle Dexter:
Some institutions, like USAA, require military affiliation. They’re hesitant to retitle accounts into trusts. Same with a lot of online banks.
If that’s the case, name the trust as the POD beneficiary. But also consider: how much money is in those accounts?
If your successor agents can’t access them, will that cripple them? Or do you have plenty elsewhere?
00:29:12 — Should You Just Add a Child to the Account?
Michelle Dexter:
Sometimes people say, “I’ll just add my kid to the account.”
Banks do that in two ways:
Signer on the account — privileges end at death or incapacity. Doesn’t help much.
Joint owner — sounds easy, but creates problems.
Why? Because a joint owner isn’t legally required to share the money with siblings. Even if you’ve told them to, when they distribute it, it’s considered a gift.
If that “gift” is over $19,000 (for 2025), it triggers a gift tax return. It may not trigger tax, but it creates hassle and paperwork.
Also—if your child is divorcing, has creditors, or is being sued—the money in your account is at risk because they’re a joint owner.
Much safer: leave the account in the trust. That way, the child steps up as successor trustee. It’s your money, not theirs, and it’s protected from their personal liabilities.
00:33:05 — Cryptocurrency
Michelle Dexter:
Crypto is another tricky one. Most crypto platforms don’t allow titling accounts in the trust.
The key here: store your login credentials, wallet codes, pass keys somewhere safe—like in your binder.
We had a client whose son died unexpectedly in his 30s. She didn’t even know he had crypto until she got a tax form from the IRS. Years later, she found a piece of paper with the key. Turned out he had $600,000 in cryptocurrency.
Without that slip of paper, it would have been gone forever.
So, with crypto, there’s no “workaround.” If your family doesn’t have the keys, they’re out of luck.
00:35:04
Michelle Dexter: So, the first thing I’m going to say is, do you have a financial advisor? If you do, they can generally help get your accounts titled into the name of the trust. Brokerage accounts usually don’t have automatic deposits or withdrawals, so changing the account number is less of an issue. Your financial advisor can definitely help with getting the account titled to the trust. If you don’t have a financial advisor, let us know—we can connect you with someone. Traditional investing accounts, your brokerage accounts, are not retirement accounts. These are more liquid, cash-like accounts. Retirement accounts will be discussed in a few minutes. Brokerage accounts should be titled in the name of your trust—they are big-ticket items that would trigger probate otherwise and are needed if you become incapacitated or have high medical bills.
00:35:58
Michelle Dexter: Next, vehicles. Most people leave their vehicles in their individual names; this reduces insurance and registration complications. In Arizona, the Department of Transportation (ADOT) has a simple beneficiary form—no notary needed—which we keep in your binder. If the vehicle is still around when you pass, your successor trustee can use this form to transfer the title into the trust.
00:37:05
Michelle Dexter: Many people trade cars every few years, so putting vehicles in the trust can be burdensome. Exceptions include classic cars or high-value occasional-use vehicles—just make sure insurance is updated if the car is titled to the trust.
00:37:57
Michelle Dexter: Life insurance is another big-ticket item. You remain the insured, but the trust can be named as both owner and beneficiary. Naming the trust as owner allows the trustee to decide whether maintaining the policy makes sense if premiums rise or your financial situation changes. Naming the trust as beneficiary avoids conservatorship issues if a minor or incapacitated individual is the beneficiary.
00:39:12
Michelle Dexter: Even if your spouse is alive, naming the trust as beneficiary ensures that your trustee manages the funds properly if needed.
00:40:13
Michelle Dexter: Business interests: LLCs can be structured with the trust as the member and you as managers. If something happens to you, the trust can appoint a new manager to wrap up or sell the business. Shareholder interests can be more complicated, sometimes requiring medallion stamp signatures and multiple trips to the bank. Partnerships and S-Corps have their own rules; trusts can only own an S-Corp interest for up to two years during your lifetime.
00:43:11
Michelle Dexter: Oil and mineral rights can be difficult to manage, often requiring deeds or filing in other states. Getting these into the trust allows longer-term control.
00:44:07
Michelle Dexter: Retirement accounts remain in your name due to IRS rules. You generally want to name individuals, not the trust, to avoid higher taxes and shorter withdrawal periods (Secure Act). Roth IRAs are less of a concern since distributions are tax-free.
00:45:06
Michelle Dexter: A standalone retirement trust can be used if beneficiaries have special needs or you want additional protections, but normally individuals are the way to go.
00:46:08
Michelle Dexter: Items that typically are not funded into the trust: mortgages, credit cards, loans, and timeshares. Mortgages are tied to personal credit and income, and timeshares can create obligations for the trust to pay maintenance fees—only fund them if beneficiaries want and can maintain them.
00:48:04
Michelle Dexter: Medallion stamps can be difficult to obtain; some banks or mobile companies charge a fee. Check county property records to confirm your home is titled in the trust. Certificates of trust list the formal trust name, which can be abbreviated if needed.
00:52:07
Michelle Dexter: After recording a property into the trust, notify the homeowner’s insurance company and add the trust as an additional insured. You can also notify homeowners associations if desired.
00:53:06
Michelle Dexter: Roth IRAs can name the trust as beneficiary because distributions aren’t taxed. Traditional IRAs and 401(k)s should generally not name the trust due to tax consequences. Savings bonds in Treasury Direct can be put in the trust to allow contingency plans. ESOPs may allow the trust as beneficiary but not owner—check with your employer.
00:55:58
Michelle Dexter: Annuities can be complicated. Some are like life insurance (tax-free), and the trust can be owner or beneficiary. Others are like retirement accounts with tax consequences; these should name individuals as beneficiaries. Identify the type of annuity carefully.
00:58:01
Michelle Dexter: Self-managed Health Savings Accounts (HSAs) may be put into the trust if allowed; otherwise, name the trust as beneficiary. Employer HSAs usually can’t be titled to the trust, but can have the trust as beneficiary.
00:58:55
Michelle Dexter: Keep your trust asset binder updated annually—review accounts, vehicles, homes, and new assets. If you inherit money or open new accounts, check that they are properly titled to the trust.
00:59:50
Michelle Dexter: Liability note: the trust is a probate avoidance trust, not an asset protection trust. Cars in the trust do not shield you from liability in accidents.
01:00:46
Michelle Dexter: Beneficiary deeds for primary residences should name the trust as beneficiary and be recorded with the county recorder.
01:01:46
Michelle Dexter: Social Security accounts remain in your name; the trust is only involved in specifying the bank account for deposit.
01:03:04
Michelle Dexter: Charitable remainder trusts are a separate topic; we may hold a dedicated webinar on that in the future.
01:03:56
Michelle Dexter: Periodically review your trust funding to make sure all new assets are accounted for. The trust funding tab in our binder includes a generic list of assets and instructions for ownership or beneficiary designations. Reach out if unclear.
Francisco Sirvent: Amen. That’s the whole deal. Thank you, everyone, and especially Michelle. The recording will be posted on YouTube. Non-clients can schedule a free 15-minute intro call to learn more about working with Michelle.
Michelle Dexter: Thank you all for attending. Keystone is generous with time for these educational webinars. It’s valuable to have you here so we can continue doing them.
Francisco Sirvent: Thank you, everybody.
