Which statement about funding a trust in New York is correct?

• A. Assets must always be transferred by recording a deed or by registering the stock certificate.
• B. If an asset is not recordable or registrable, the grantor must assign the asset to the trust in writing.
• C. Pension and insurance trusts require funding in all cases.
• D. Funding a trust is optional for all asset types.

Answer: (B)

Funding a trust means getting assets into the trust so the trustee can manage and distribute them. In New York, you fund assets that have a record title by retitling them—real estate is transferred by a deed to the trust, and marketable securities are re-registered in the trust’s name. For assets that can’t be recorded or registered, the grantor must transfer them to the trust through a written assignment.

This approach explains why the statement about non-recordable assets needing a written assignment is the best description. The other options miss important nuances: not every asset must be transferred by deed or stock registration, since some can be funded by assignments or other methods; pension and insurance plans aren’t necessarily funded into the trust in every case (beneficiary designations can play a role); and funding a trust is not optional for assets intended to be held in the trust.