Trust Funding: What You Need to Know

You’ve set up your Trust, but there’s one more critical step: funding it. Without this, your Trust won’t work as intended. Here’s a straightforward guide on why funding is crucial and how to do it effectively.

Why Funding Your Trust Matters

Creating a Trust is just the start. To make sure it works, you need to transfer your assets into it. Many people overlook this step, leaving their Trust empty. Imagine you’ve created a beautiful, new basket but forgot to put anything in it. That’s what happens if you don’t fund your Trust. Assets that aren’t included may end up in Probate court, which is precisely what Trusts are meant to avoid.

How to Transfer Assets

Not all assets are transferred into a Trust in the same way. Here’s a quick overview:

• Real Estate: Changing the title of your property to the Trust’s name ensures it’s included.
• Bank Accounts: You’ll need to change the account holder’s name to the Trust.
• Investments: Update account titles to reflect the Trust’s ownership.
• Personal Property: This can include items like jewelry or art. You might need to list these in your Trust documents or physically transfer them.

Each type of asset has its own process for transfer. Understanding these differences can save you time and avoid future complications.

The Role of Schedules

You might hear about schedules when discussing Trusts. These lists can help you keep track of what’s included in the Trust but remember, merely listing items isn’t enough to transfer them. You need to follow specific legal steps to ensure everything is properly included.

Take the Next Step

Funding your Trust is essential to make sure it serves its purpose. It’s the final step in ensuring that your assets are protected and that your estate plan works as intended.

Get Expert Help

Navigating the details of Trust funding can be tricky. At The Mendez Law Firm, we specialize in Estate Planning and can guide you through the entire process. Call us at (407) 380-7724 or Email Us TODAY at mail@themendezlawfirm.com. We offer a FREE, No Obligation, No Cost office or Virtual Zoom conference to discuss your Family Estate Plan. We’ll review probate avoidance strategies and asset protection options tailored to your needs. If you need help with estate planning in the Greater Orlando area, we’re here to support you.