When it comes to estate planning, creating a trust is a powerful step toward protecting your family and ensuring your wishes are honored. But many people make one critical mistake: they stop after signing their trust documents.
If you don’t complete the next steps often called “funding your trust” your estate could still end up in probate court. That’s exactly what you were trying to avoid in the first place.
In this article, we’ll explain what trust funding is, why it’s so important, and how you can ensure your estate plan actually works the way you intended.
What Is Trust Funding?
Trust funding simply means transferring ownership of your assets into your trust.
This can include:
- Bank accounts
- Real estate
- Investment portfolios
- Business interests
- Personal property
If your assets aren’t properly retitled or assigned to your trust, the trust can’t control them — and that means the probate court might step in when you pass away.
Why Skipping This Step Can Be a Costly Mistake
Failing to fund your trust can lead to serious problems for your loved ones:
- Probate Costs
Even with a trust, assets not properly titled could still be subject to probate fees and court proceedings. - Delays
Probate can delay access to funds your family may urgently need. - Unintended Distribution
Your assets might not be distributed according to your wishes if the trust isn’t properly funded. - Emotional Strain
Family members already dealing with grief could face additional stress navigating the court system.
Simply put… an unfunded trust is like buying a safe but leaving your valuables on the front porch.
How to Properly Fund Your Trust
Funding your trust is not a one-size-fits-all process. It depends on the types of assets you own. Here’s a general guide:
- Real Estate
Execute and record a new deed transferring property into your trust. - Bank Accounts
Retitle accounts in the name of your trust or list the trust as a payable-on-death (POD) beneficiary. - Investment Accounts
Work with your financial advisor to update account ownership or beneficiary designations. - Business Interests
Amend business ownership documents (such as an LLC Operating Agreement) to reflect the trust’s ownership. - Personal Property
List valuable personal property (jewelry, art, collectibles) in an Assignment of Personal Property document.
Pro Tip
Some assets, like retirement accounts and life insurance policies, may be better suited for beneficiary designations rather than retitling. It’s important to work with an experienced estate planning attorney to make sure everything aligns properly.
When Should You Review Your Trust Funding?
Even after initially funding your trust, you should review your assets regularly. Common life events that call for a funding check include:
- Buying or selling property
- Opening new bank or investment accounts
- Starting or selling a business
- Marriage, divorce, or the birth of a child
- Receiving an inheritance
Your estate plan should grow and adapt with your life. Regular check-ins ensure that your trust stays properly funded and fully effective.
Don’t Let Your Estate Plan Fall Short!
At Sabrina Winters, Attorney at Law, PLLC, we believe your estate plan should truly protect your family — not leave them with unexpected costs or confusion.
If you’ve already created a trust but haven’t funded it, or if you’re not sure whether your assets are properly titled, now is the time to act.
🌐 Visit sabrinawinterslaw.com to schedule your planning session.
📍 Proudly serving Charlotte and surrounding areas.
📞 Don’t wait, tomorrow isn’t promised for any of us. Let’s make sure your wishes are honored the way you intended.