When details of Matthew Perry’s estate became public, they revealed that about $1.6 million remained in a personal bank account even though most of his wealth had been placed in a trust. Because that account was never transferred into the trust, it may still have to go through probate, illustrating how even a well-designed estate plan can miss key assets. Situations like this show why understanding how to fund a living trust in California is just as important as creating the trust itself. Read more about his estate here.
If you’re wondering how to fund a living trust in California, this guide explains the practical steps involved and how to avoid leaving assets outside your trust.
Why Funding Your Trust Matters
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Assets not placed in your trust may still go through probate—even if you have a trust.
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As AARP explains, a trust won’t function unless you transfer your assets into it.
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A properly funded trust avoids court delays, protects your privacy, and helps your loved ones during incapacity or after your passing.
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Funding is the step that activates the protections your trust was designed to provide.
Step 1: Decide What Belongs in the Trust
Not all assets need to go into your trust, but many should.
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Include: homes, bank accounts, investments, LLC interests, and valuable personal property
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Exclude: IRAs and 401(k)s (these stay in your name for tax reasons, but you can name the trust as a beneficiary)
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Optional: vehicles—some people add them, but others avoid it due to DMV limits and liability concerns
Step 2: Change the Title of Your Assets
To truly understand how to fund a living trust in California, you need to know how to retitle your assets. This step is where most people drop the ball—and where mistakes (like those in Matthew Perry’s case) can lead to probate.
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Real estate – Prepare and record a new deed transferring the property to your trust.
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Bank accounts – Bring your trust documents to your bank and ask to retitle the account. Many banks will require a Certification of Trust.
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Investment and brokerage accounts – Contact your provider for their specific transfer process.
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Vehicles – This can be done through the California DMV, but it’s optional for most.
Step 3: Assign Personal Property
Not everything has a title—but you can still move it into your trust.
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Draft a general assignment of personal property.
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Include specific items like collectibles, jewelry, or artwork.
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Keep the document with your trust paperwork.
Step 4: Update Beneficiary Designations
You can’t retitle some assets, but you can direct them into your trust at death.
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Review your life insurance and retirement account beneficiary designations.
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Consider naming your trust as a contingent or primary beneficiary, depending on your goals.
Step 5: Keep Everything Documented and Current
Once your trust is funded:
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Store copies of all deeds, assignments, and account transfers.
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Inform your successor trustee where to find everything.
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Review your trust annually or after any major financial changes.
Learn From the Celebrities—and Get It Right
Matthew Perry created a living trust—the “Alvy Singer Living Trust”—that successfully avoided probate for most of his assets. But he left about $1.5 million in bank accounts outside the trust, which may now go through court. This shows how even small oversights can undermine a good estate plan.
Want to know more about how to fund a living trust in California? The California Department of Financial Protection & Innovation offers useful insights on building a lasting legacy through smart estate decisions.
Need Help Funding Your Trust? We’re Here.
At the Law Offices of David Knecht, we help California clients create and properly fund their living trusts. We make sure your plan works when your family needs it most.
Call (707) 451-4502 today to schedule a consultation.
