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Time Limit on Funding a Revocable Trust?

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cindy612

Junior Member
What is the name of your state (only U.S. law)? Maryland

Is there a time limit on funding a Revocable Trust?

Once the trust was written and signed, the owner has yet to fund the trust. I hate to see him waste his money by not funding it properly.

The trust was intended to be funded after being created, not at death, but owner didn't like the fact he has to send the original trust documents to all his multiple stock companies (stocks held in multiple Computershare accounts) for changing title of assets. He feels they could lose the document and therefore doesn't trust them with it.

Any insight you could give would be helpful. Thank you.
 


FlyingRon

Senior Member
He needs to fund it before he dies. He's just rolling the dice that he's going to live long enough to do it.

I never had to send the trust documents (originals or otherwise) anywhere to fund mine. The originals have been in my
fire safe from the time they were signed in the lawyers office. My broker handled titling the stocks. The lawyer did the
transfer of the real property.
 

cindy612

Junior Member
I agree he is rolling the dice and, yes, the day before death is the time limit to fund it. I wasn't sure legal paperwork like this had a time limit for funding.:)

Unfortunately, he does not have a broker. All stocks were purchased directly from the company and Computershare either handles keeping re-invested dividends, or actually holds each company stock.

He receives a different Computershare statement for EACH company he holds.

My guess is he has physical possession of the original stock certificates which need to be sent to the company for title change, or deposited into a brokerage account, then change the title on the brokerage account for all at once.

The brokerage firm where I previously worked required the original trust paperwork to be sent to the home office for recording the change in name on the account (from individual to trust). Once completed, they sent it back to the broker to return to the client.

Thank you for your advice, it has been helpful.
 
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Kiawah

Senior Member
Open one new brokerage account, titled as the trust. (I've never had to send the original trust documents either, just copies).

Once the new brokerage account is opened, then contact each of the existing brokerage accounts, fill out their required paperwork, and have them transfer the assets from the existing account, to your new trust brokerage account. Close the old account after the transfer.

You can also mail in physical stock certificates, and have them deposited into the new trust brokerage account.

This will get all of the assets into the trust, as well as significantly simplifying record keeping for the trustee of the trust. This will make life SOOO much easier, having a single consolidated account.
 
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cindy612

Junior Member
All is really easy, except for convincing him that everything in one place will make life easier. He is not trusting those companies with his trust paperwork, nor the US mail. (sigh)

He also likes to have physical possession of the stock certificates. Unfortunately, family advice is not taken. May have to try from a different angle and use some "expert" to discuss this with him.

Hopefully we have time to get this sorted out and accomplished.

I appreciate all your help, thank you.
 

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