What Does Funding a Trust Mean?
Simply, funding a trust is the process of transferring assets—be it real estate, bank accounts, beneficiary designations, stocks, or other valuable property—into the trust. While this might seem simple, it is often overlooked and can lead to many costly problems. Why is it important to fund a trust?
1. Avoiding Probate
2. Maintain Control
3. Putting Everything Under One Roof to Avoid Legal Issues and Privacy Concerns
If your assets are left outside your trust, they can be more easily contested and litigated in court. These disputes can be costly and stressful for your loved ones. By properly titling assets into your trust, you ensure that they are covered under your “trust umbrella” and sheltered from the storms that can exist outside of your trust. Additionally, anything left outside your trust will be subject to the public display of the Probate process, where generally, everything filed is a matter of public record. Without proper funding, you may lose this key privacy benefit revocable living trusts provide.
An Unfunded Trust is a Safe with Nothing in It
Without proper funding, a trust is ineffective in achieving its key benefits over a will-based estate plan. Consult with an experienced estate planning lawyer today to ensure your trust is properly funded and that you take advantage of the benefits of a revocable living trust-based estate plan.
