In order for a trust to function it is necessary for the settlor to transfer assets into the trust. The settlor will need to transfer bank accounts, real property, investment accounts, and all other property into the name of the trust. Once that is done, the trustee has power over all of those assets.
Why set up a trust?
Probate avoidance. If all of your assets are placed in a trust, then they transfer at death to your beneficiaries without having to go through probate, thus saving time and expense. As with a will, you can name in your trust to whom your assets will pass upon death, and also name a successor trustee, to be in charge of things in the same way a personal representative would be in a will.
Combining yours and your spouse’s estate plans jointly. A joint trust between husband and wife provides estate planning for two, with assets flowing directly from husband to wife upon the death of one.
Since a trust is in effect during your lifetime, not just upon your death, trusts can provide for taking care of your assets and finances in the event you become incapacitated, either physically or mentally.