Bill of Sale to Trust (Itemized Transfer of Personal Property)

BILL OF SALE TO TRUST

(Itemized Transfer of Specific Personal Property)

PARTIES

ARTICLE I — RECITALS

A. The Assignor is the sole and lawful owner of the items of tangible personal property described on Schedule 1 attached hereto and incorporated by reference (the "Property").

B. The Assignor executed that certain trust agreement entitled [FULL NAME OF TRUST] dated [__/__/____] (the "Trust"), under which the Assignor serves as ☐ initial Trustee ☐ co-Trustee, and which is ☐ revocable ☐ irrevocable.

C. The Assignor intends by this Bill of Sale to transfer absolute ownership of the Property to the Trustee, to hold, manage, and dispose of as part of the corpus of the Trust pursuant to its terms.

D. The Assignor warrants that the Assignor has good and marketable title to the Property, free and clear of all liens, encumbrances, security interests, and adverse claims, except as expressly disclosed on Schedule 2 (Encumbrances), if any.

ARTICLE II — CONSIDERATION

☐ Alternative A — Gratuitous Transfer to Settlor's Own Trust (most common).
For and in consideration of the love and affection the Assignor bears for the beneficiaries of the Trust, and the Assignor's desire to fund the Trust for estate-planning purposes, and without monetary consideration, the Assignor hereby sells, assigns, transfers, conveys, sets over, and delivers the Property to the Trustee.

☐ Alternative B — Transfer for Value.
For and in consideration of the sum of $[AMOUNT] ($[AMOUNT IN WORDS]) and other good and valuable consideration paid by the Trustee, the receipt and sufficiency of which are hereby acknowledged, the Assignor hereby sells, assigns, transfers, conveys, sets over, and delivers the Property to the Trustee.

ARTICLE III — WARRANTIES OF TITLE

The Assignor represents, warrants, and covenants to the Trustee as follows:

1. Sole Ownership. The Assignor is the sole, true, and lawful owner of the Property and has full right, power, and authority to transfer the Property to the Trustee.

2. Clean Title. The Property is free and clear of all liens, mortgages, security interests, pledges, charges, encumbrances, adverse claims, and rights of any third party, except as expressly disclosed on Schedule 2.

3. No Pending Claims. No litigation, claim, or proceeding is pending or, to the Assignor's knowledge, threatened that could affect title to or the Trustee's quiet enjoyment of the Property.

4. No Fraudulent Transfer. This transfer is not made with intent to hinder, delay, or defraud any creditor of the Assignor; the Assignor is solvent at the time of transfer; and the Assignor will remain solvent after the transfer.

5. Defense of Title. The Assignor shall warrant and defend title to the Property unto the Trustee against the lawful claims and demands of all persons.

6. Further Assurances. The Assignor shall execute and deliver such further documents, including separate title applications, endorsements, and powers of attorney, as may be reasonably required to vest record and beneficial title in the Trustee.

ARTICLE IV — TAXABLE-EVENT STATUS

A. Federal Income Tax. If the Trust is a grantor trust for federal income-tax purposes under IRC §§ 671–679 as to the Assignor, this transfer is disregarded for federal income-tax purposes; no gain or loss is recognized; and the Trust takes carryover basis under IRC § 1015 (with later step-up at the Assignor's death under IRC § 1014 to the extent the Property is includible in the Assignor's gross estate).

B. State Sales / Use Tax. The parties have determined, based on the law of [STATE OF TRANSFER], that this transfer ☐ is not subject to state sales or use tax because it is a gratuitous transfer to the Assignor's own revocable trust without consideration ☐ is subject to state sales or use tax in the amount of $[AMOUNT], which the Trustee shall remit ☐ qualifies for an exemption under [STATUTE CITATION], for which the Trustee shall file the applicable exemption form.

C. Gift Tax. ☐ No federal gift-tax return is required because the transfer is to the Assignor's own revocable trust and is therefore an incomplete gift. ☐ A federal gift-tax return (Form 709) is required because [REASON], and the Assignor shall timely file the return.

D. Documentary / Transfer Tax on Titled Property. For each titled item on Schedule 1, the parties shall file the documentary-transfer or excise-tax form required by the applicable DMV, vessel registry, or aircraft registry, and shall claim any available trust-funding exemption.

ARTICLE V — INSURANCE AND RECORDKEEPING

A. Insurance Endorsements (REMINDER). Within thirty (30) days of the date of this Bill of Sale, the Trustee shall:

• Notify the homeowner's, fine-arts, vehicle, vessel, aircraft, umbrella, and any other applicable insurance carriers that ownership of the Property has been transferred to the Trust.
• Cause the Trust to be named as the named insured, additional insured, or loss payee, as appropriate, on each policy covering any item of Property.
• For any scheduled personal-property rider (fine arts, jewelry, firearms, wine, collectibles), provide the carrier with this Bill of Sale and the trust certification and request that the schedule be reissued in the name of the Trust.

B. Basis and Appraisal Records. The Trustee shall maintain in the trust binder, for each item of Property:

• Original purchase invoice or contract of sale (if available).
• Date of acquisition by the Assignor and original cost basis.
• Any qualified appraisal obtained at or before the date of transfer.
• Copies of all insurance schedules and endorsements.
• For titled items: the new certificate of title in the Trust's name, and any prior title surrendered to the DMV / registry.

C. Mark and Tag. Where practicable, each item should be photographed and tagged with an inventory number corresponding to Schedule 1, and the photograph file should be stored with the trust records.

ARTICLE VI — SCHEDULES

Schedule 1 — Itemized List of Property Transferred

Schedule 2 — Disclosed Encumbrances (if any)

ARTICLE VII — GENERAL PROVISIONS

A. Governing Law. This Bill of Sale shall be governed by the laws of the State of [STATE], without regard to its conflict-of-laws principles.

B. Effective Date. This Bill of Sale is effective as of the date of the Assignor's signature below.

C. Binding Effect. This Bill of Sale binds and inures to the benefit of the parties and their respective heirs, successors, assigns, executors, administrators, and trustees in office from time to time.

D. Counterparts. This Bill of Sale may be executed in counterparts, each of which shall be deemed an original.

E. Entire Agreement. This Bill of Sale, together with the Trust and the attached Schedules, constitutes the entire agreement of the parties with respect to the Property.

EXECUTION

ASSIGNOR / SETTLOR:

Signature: [_________________________________]
Printed Name: [ASSIGNOR FULL LEGAL NAME]
Date: [__/__/____]

ACCEPTED BY TRUSTEE:

Signature: [_________________________________]
Printed Name: [TRUSTEE FULL LEGAL NAME]
Title: Trustee of the [FULL NAME OF TRUST], dated [__/__/____]
Date: [__/__/____]

WITNESSES (Recommended; required in some states for titled property)

NOTARY ACKNOWLEDGMENT

State of [_________________________________]
County of [_________________________________]

On [__/__/____], before me, [NOTARY NAME], a Notary Public, personally appeared [ASSIGNOR FULL LEGAL NAME], who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of [____________] that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary: [_________________________________]
Notary Seal / Stamp: [_________________________________]
Commission Expiration: [__/__/____]

SOURCES AND REFERENCES

• Uniform Trust Code §§ 401–402 (creation and funding of trusts).
• Restatement (Third) of Trusts § 10 (methods of creating a trust).
• IRC §§ 671–679 (grantor trust rules); IRC § 1014 (basis step-up at death); IRC § 1015 (gift basis carryover); IRC § 2511 (gifts of property).
• Cal. Veh. Code § 5600 et seq.; Fla. Stat. § 319.22; Tex. Transp. Code § 501.0234 (state vehicle-title transfer rules).
• IRS Form 709 Instructions (gift-tax reporting); IRS Publication 561 (valuing donated property); IRS Publication 526 (qualified appraisal standards).
• ACTEC Commentaries on Trust Funding (latest edition).