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How Does a Living Trust Work?
I have just created a Living Trust and am ready to transfer my bank accounts into it. Will the new name of the account(s) be the Trust? Will I be able to sign checks as I have before, in my name only?
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 Check all of this information out with the attorney that helped you create the trust. In order for the transfer of funds into the trust to be effective, they will need to be moved to an account that is owned by the trust. Normally, a new account should be set up so that there is an actual transfer of the funds from your account as an individual to the trust's account, even if you will maintain control over the funds as trustee.
Whether your bank sets up a new account or changes the title of your existing account is, however, a decision for them to make. The account will need to reflect its ownership by the trust in order for your trust plan to work.
It's not uncommon for checks on accounts held by revocable (living) trusts to look like checks of the individual grantors, just like the ones you're used to using. Your signature on the checks will be whatever you and the bank agree upon as your signature.
Verify all of this information with your attorney. We don't practice law and you need to make sure that you don't do anything to upset the intent of the trust, so your attorney, who is familiar with your state's trust laws, should be the final source of guidance.
Published on BankingQuestions.com 8/07/08
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