Yes, absolutely you can, and in fact, it’s a very common and often recommended practice to fund a trust during your lifetime, known as a “living trust.” This differs from a testamentary trust, which is created through your will and only comes into effect after your death. Funding a trust involves transferring ownership of your assets – like bank accounts, real estate, and investments – into the name of the trust. This isn’t a one-time event; it’s an ongoing process as you acquire and dispose of assets. Properly funding the trust is what allows it to function as intended, avoiding probate and ensuring a smooth transfer of your wealth to your beneficiaries.
What assets should I transfer into my trust?
Ideally, most of your significant assets should be titled in the name of the trust. This includes real estate (homes, rental properties), financial accounts (checking, savings, brokerage accounts), stocks, bonds, mutual funds, and even personal property like valuable artwork or collectibles. While retirement accounts like 401(k)s and IRAs can be more complex to transfer directly, your trust can designate beneficiaries to receive those funds upon your death. According to a recent study by the American Association of Retired Persons (AARP), approximately 60% of Americans do not have an updated estate plan, leaving significant assets vulnerable to probate delays and potential disputes. It’s crucial to work with an estate planning attorney to determine the best approach for each asset, considering tax implications and specific circumstances.
What happens if I don’t fund my trust correctly?
I remember Mrs. Gable, a lovely woman who came to me after her husband passed away. She had a trust prepared years ago, but never actually transferred the deed to their primary residence into the trust’s name. As a result, the house had to go through probate, costing her thousands in legal fees and delaying the transfer to her children by almost a year. It was a heartbreaking situation, entirely avoidable with a simple deed transfer. This scenario isn’t uncommon; a trust document is just a piece of paper until it’s *funded*. Failing to fund the trust effectively renders it useless, meaning your assets will still be subject to probate – the very process you were trying to avoid. Studies show that probate can cost between 5% and 10% of the estate’s value in many states.
How can I ensure my trust is properly funded?
The key is a systematic approach. We begin with a thorough asset inventory, identifying everything you own. Then, we work through each asset, initiating the necessary transfer procedures. For real estate, this involves preparing and recording a new deed. For financial accounts, it involves changing the registration to reflect the trust as the owner. It’s not a task to be undertaken lightly; a single missed asset can negate the benefits of the trust. I once assisted Mr. Henderson, a retired engineer, who meticulously funded his trust over several months. He kept a detailed spreadsheet of every transfer, ensuring everything was properly documented. When his wife passed away unexpectedly, the trust functioned flawlessly, allowing his children to access their inheritance within weeks.
What are the benefits of funding a trust while I’m alive?
There are significant advantages to funding your trust while you’re still alive. Primarily, it allows you to maintain control over your assets during your lifetime. You remain the trustee (or co-trustee) and can manage the assets as you see fit. Furthermore, it simplifies the process for your successor trustee after your death. Because the assets are already titled in the name of the trust, there’s no need for court intervention to transfer ownership. This saves time, money, and emotional distress for your loved ones. “A well-funded trust is like a roadmap for your wealth,” I often tell my clients, “It provides clarity and direction, ensuring your wishes are honored and your beneficiaries are protected.” According to the National Probate Courts Association, the average probate case can take anywhere from six months to two years to complete, a delay your beneficiaries can avoid with a properly funded living trust.
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
estate planning attorney near me
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “What should I know about jointly owned property and estate planning?” Or “Can real estate be sold during probate?” or “What happens if my successor trustee dies or is unable to serve? and even: “Can I convert my Chapter 13 bankruptcy to Chapter 7?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.