Most people forget to do one of the most important steps in finalizing your estate plan. They think that once they have their estate plan created, their work is done.
But that isn’t the case.
One of the most common mistakes people make with their estate plans is neglecting to actually fund their trust.
Many people go through the entire process of developing their estate plan. They create their trust, designate trustees, and finalize their pour-over will, but then they never complete the necessary steps to make their estate plan a reality – they fail to fund.
Funding a trust, which is the last step, means transferring all your assets into your trust. This step is required in order for your designated agents (trustee) to have the authority to carry out your wishes.
How it works:
Once your property has been transferred into the trust, you want to make sure your assets are transferred into it as well. This includes bank accounts, any stocks, and all other assets – they should all be added to your trust.
What happens if you don’t fund your trust?
All of the items that you have not funded, or transferred into your trust are still in your singular name. This means that once you pass or become incapacitated and unable to manage your trust, your trustees will end up going to court, to determines what happens to your assets.
Make sure that you fund your trust once you create it. Doing so will avoid a lot of headaches, time, money, and court.
Don’t have a trust or an estate plan?
Contact us to get started today!
- 1 Oct, 2019
- Löan Shillinger
- 0 Comments