How to fund a living trust in Colorado
Funding a living trust means moving your property into the trust’s name, or naming the trust as beneficiary. In Colorado, as of October 2026, property left outside the trust may still need probate. Funding usually means recording a new deed for your home and retitling bank and investment accounts. Retirement accounts usually stay in your name.
- Reviewed by
- Daniel R. Klein, attorney
- Last reviewed
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- 5 minutes
This guide is general information about Colorado and Arizona law as of . It is not legal advice.
What does it mean to fund a trust?
A living trust is a legal setup you control while you live. It can pass your property without probate, the court process for settling an estate.
But signing a trust is only the first step. The trust controls only property that belongs to it. Funding a trust means moving your property into the trust’s name, or naming the trust to receive it at your death.
Think of a trust as an empty box. Signing it builds the box. Funding puts your things inside.
Why does funding matter?
An unfunded trust may not do its two main jobs.
It may not avoid probate. Property still in your own name usually goes through probate. Your pour-over will can send that property to the trust. But the pour-over will itself goes through probate first. Colorado probate cases usually stay open at least 6 months (C.R.S. 15-12-1003).
It may not help if you can’t manage your money. Your successor trustee can manage only what is in the trust. Anything outside it may need a durable power of attorney, or even a court conservatorship.
What should go into your living trust?
Different kinds of property are funded in different ways. This table shows the usual approach. Plans differ, so a lawyer can confirm the right approach before anything changes.
| Property | The usual way to fund it | Things to know |
|---|---|---|
| Home or land in Colorado | Sign and record a new deed from you to you as trustee | Tell your lender and your homeowner’s insurer |
| Bank and credit union accounts | Retitle into the trust, or name the trust as payable-on-death beneficiary | Each bank has its own forms |
| Brokerage and investment accounts | Retitle into the trust, or name the trust as transfer-on-death beneficiary | Ask the firm for its trust forms |
| IRAs, 401(k)s, annuities | Usually do not retitle. Update the beneficiary form instead | Changing the owner can cause income tax |
| Life insurance | Name the trust, or people, as beneficiary | Depends on your plan |
| Cars and trucks | Often left out. Name a transfer-on-death beneficiary instead | Colorado uses form DR 2009 (C.R.S. 42-6-110.5) |
| Household items, jewelry, art | Sign a written assignment to the trust | One document can cover most belongings |
| Business interests | Assign your share to the trust | Check your company’s agreement first |
| Property in another state | Record a deed in that state | Arizona beneficiary deeds can name your trust (A.R.S. 33-405) |
| New accounts you open later | Open them in the trust’s name | Easy to forget |
How do you fund a trust, step by step?
- List what you own. Write down each home, account, policy, and vehicle, and how it is titled now. Our what to bring checklist can help.
- Get your trust details ready. Banks will want the trust’s name, its date, and who the trustees are. Many accept a short trust summary instead of the whole trust.
- Record the deed for your home. The new deed is recorded with the county clerk and recorder where the home sits.
- Contact each bank and investment firm. Ask for their forms to retitle the account, or to name the trust as beneficiary.
- Update beneficiary forms. This covers life insurance, IRAs, 401(k)s, and annuities. Each form usually lets you name a beneficiary and a backup.
- Assign your personal belongings. Sign a written assignment that moves household items and valuables into the trust.
- Keep a funding list. Store a list of every asset and how it was funded with your trust documents.
- Check again over time. Many people check their funding list every year or so, and review their whole plan every three to five years. A check also makes sense whenever you buy, sell, or refinance property.
What mistakes should you avoid?
- Retitling a retirement account. This can cause income tax. Use the beneficiary form instead.
- Refinancing and forgetting the trust. Some lenders ask you to take your home out of the trust to refinance. If so, ask us to help put it back afterward.
- Forgetting new accounts. A new CD or brokerage account in your own name is outside the trust.
- No backup beneficiary. If your first choice dies before you, the account may end up in probate.
- Assuming it’s all done. Ask your lawyer exactly what they funded, and what is left for you to do.
What if something is left out of the trust?
It happens. Your pour-over will sends that property to the trust, but it may need probate first.
If what is left out is small, your family may be able to use a small estate affidavit instead. As of October 2026, that works for personal property worth $88,000 or less, for a person who died in 2026 (C.R.S. 15-12-1201; JDF 999). It can be used 10 days after the death. It cannot transfer a home or land.
That is why the home is the most important thing to fund. In Colorado, a home left outside the trust usually needs probate.
Who does the work of funding?
Funding is usually a shared job. Your lawyer often prepares the deed for your home and the assignment for your belongings. You often contact your banks and update beneficiary forms, since those companies want to hear from you.
Ask us at your complimentary consultation what funding help is part of your plan.
If you live in Arizona, what is different?
Funding works much the same way in Arizona, with a few differences (as of October 2026):
- Both spouses sign for real estate. Arizona is a community property state. Both spouses must join in real estate deals, so both usually sign the deed (A.R.S. 25-211, 25-214).
- Beneficiary deeds can name your trust. An Arizona beneficiary deed can name your living trust as the beneficiary (A.R.S. 33-405). It can act as a backup if a deed into the trust is missed.
- Vehicles can have a TOD beneficiary. Arizona allows a transfer-on-death beneficiary on a car title (A.R.S. 28-2055).
- Higher small estate limits. Personal property up to $200,000 can pass by affidavit after 30 days. Arizona real estate up to $300,000 can pass by a separate affidavit after 6 months (A.R.S. 14-3971).
Questions people ask
Does putting my house in a trust change my property taxes or mortgage?
Usually not, but it is worth checking before a deed is recorded. Moving your home into your own revocable trust does not usually change your mortgage terms or your property tax. Lenders, insurers, and tax offices each have their own forms. Many people tell their lender and insurer first, and ask us about their situation.
Do I have to change my bank accounts to the trust’s name?
There are two common ways. You can retitle the account into the trust, or you can name the trust as the payable-on-death beneficiary. Either way, the account passes to the trust at your death. Your bank will tell you which forms it uses.
Should my IRA or 401(k) go into my trust?
Usually not. Changing the owner of a retirement account can cause income tax. Instead, you update the beneficiary form. Some people name the trust as beneficiary, and some name people directly. Ask us before you change anything.
What if I already have a trust but never funded it?
That is common, and it can be fixed. Gather a list of what you own and how each item is titled. We can help you see what is in the trust, what is not, and what to do next.
When should you call a lawyer?
Consider calling us if:
- you signed a trust years ago and aren’t sure it was funded,
- you are about to buy, sell, or refinance a home,
- you own a home or business in more than one state,
- you are not sure how to handle a retirement account,
- a loved one has died and some property is outside their trust.
Sources
- Colorado Revised Statutes, Title 15 (2024 official edition): C.R.S. 15-5-401; 15-12-1003, -1201
- Colorado Judicial Branch: JDF 998 and JDF 999
- Colorado DMV: What to do when a loved one dies (C.R.S. 42-6-110.5; form DR 2009)
- Arizona Revised Statutes: A.R.S. 14-3971, 25-211, 25-214, 28-2055, 33-405
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