Checklist for funding your trust.

(Settlor is the Initial Trustee)

Now that you have established a Revocable Living Trust designating yourself as the initial Trustee, you must place your assets into your Trust. In order to actually place assets into your Trust, a change in ownership title is required. For example, to place a savings account or stock certificate into your Trust requires that the account or certificate reflect ownership as (YOUR NAME), Trustee of the (YOUR NAME) REVOCABLE TRUST. In most cases, when you are asked for a copy of the Trust Agreement, the Short Form Trust will do. This checklist is designed to assist you in recognizing the primary tasks to be accomplished in transferring assets into your Trust.

1. STOCKS AND BONDS

a. Individually held stocks: send stock certificates to Transfer Agent along with signed stock and bond powers.

b. Brokerage Account: contact broker to change name of account to Trust name.

2. SAVINGS AND CHECKING ACCOUNTS

a. Regular Passbook Savings

Contact bank and request them to change the name on the account to the Trust name. Some banks will require that an existing account be closed and a new one opened for the Trust. If so, close old passbook to coincide with end of calendar quarter to ensure no interest income is lost.

b. Time Certificate

Contact bank and request them to change the name on the CD to the Trust name. Some banks will require the redemption of an existing CD and the purchase of a new CD in the Trust name. If so, do not redeem immediately since it may result in interest penalty. At maturity date, purchase new Time Certificate in Trust name.

c. Checking

Contact bank and request them to change the name on the account to the Trust name. Some banks will require that an existing account be closed and a new one opened. Other banks will simply change the name on the account and keep the same account number.

3. SAFE DEPOSIT BOX

Change name on safe deposit box to the Trust name.

4. LIMITED PARTNERSHIPS

Write to general partner for form to assign limited partnership interest. No need to make the Trust a substituted limited partner.

5. AUTOMOBILES (Optional)

An automobile is transferred into trust just as though the vehicle was being sold to the trust. The title, safety check, registration, mileage reading, signed copy of Short Form Trust and photo copy of Short Form Trust need to be taken to the Motor Vehicle Branch of the Department of Finance (943-3239). They want to look at the signed copy of the Short Form Trust, but will keep the photo copy. The transfer may also be made through the Satellite City Hall or by hiring Janet May at Stand In Line For You (734-5676).

6. LIFE INSURANCE

(a) To Revocable Trust.

It is recommended that both the ownership and beneficiary designation of your life insurance be changed so that your Revocable Trust is both the owner and beneficiary. The owner and beneficiary should be (YOUR NAME), Trustee, or the then acting Trustee, of the (YOUR NAME) REVOCABLE TRUST dated ________________."

(b) Send change forms to:

Insurance companies and attach endorsements to policies when received from insurance companies.

7. REAL PROPERTY

a. Conveyance

(1) Prepare Conveyance Document (Deed, Assignment of Lease, etc.) and Exemption from Conveyance Tax Certificate (Form P-64B)

(2) Obtain Consent of Mortgagee

(3) Obtain Consent of Lessor

(4) Record at Bureau of Conveyances

b. Home Exemption on Residence

Refile Home Exemption for real property taxes with Real Property Assessment Division, Dept. of Finance, 842 Bethel Street, 2nd Floor, Honolulu, Hawaii 96813.

c. Insurance

Notify homeowners insurance carrier of the transfer into the Trust. The Trust should be named as an additional insured.

(Note: For married persons, taking property out of tenancy by the entirety ownership and placing it in the Trust may remove it from protection against creditors claims)

8. IRA & PENSION PLAN

Designate spouse as primary beneficiary and your children ":in separate equal shares" as secondary beneficiary. .

9. TAX RETURNS

No federal or state fiduciary income tax returns (Form 1041 and N-40) need be filed while you are acting as your own Trustee. Continue to report all of your income and deductions on your individual or joint income tax return. The Taxpayer ID number for your Trust is your social security number.