You should transfer all of your non-qualified accounts and your safe deposit box into your revocable trust. You can transfer the accounts using the form available by clicking here. Your bank checking, savings, money market, and certificate of deposit accounts should be transferred to your trust. It is not necessary that you obtain new checks, or a new account number. In fact, Attorney Donohew suggests that you not identify the account as being owned by the trust on the checks themselves.

You should not transfer qualified or IRA CD’s or money market accounts. Of course, if you use the previously suggested form, this should not be a problem.

If you are a member of a credit union, you may find that the credit union will not allow you to own trust accounts. This is an increasingly rare event. If you are told that your institution will not allow a particular account to be held by a trust, simply ask that the account be payable upon death to the trustee of the trust. This will necessitate that the account be closed upon death, but the account will pass outside of probate at your death. Keep in mind the weaknesses of this approach, including, but not limited to the fact that your family is limited to control of the account using your power of attorney at a time of illness, incapacity or incompetency. You may want to consider another institution, or other planning to reduce associated risks. Regardless,  consult your attorney if you have questions.

FDIC Insurance

An uncommon, but important question, is what impact funding a cash account will have on FDIC insurance coverage. The insurance of accounts in revocable trust funds is a 2complicated topic. It is difficult to make quick and easy statements about how such trust accounts are insured. The FDIC has published a detailed memorandum that outlines the various issues that should be considered. If you have questions, we recommend that you contact your estate planning attorney.