Creating a trust is only the first step in estate planning; the crucial, often overlooked, process of “funding” the trust is what truly activates its benefits and ensures your assets are distributed according to your wishes. Simply put, funding a trust means transferring ownership of your assets—like real estate, bank accounts, investments, and personal property—into the name of the trust. Without this transfer, the trust remains an empty vessel, unable to fulfill its purpose. Roughly 60% of estate plans fail because the trusts are never properly funded, leaving families with unnecessary probate costs and delays.
What assets *can* I put in my trust?
Nearly any asset can be transferred into a trust, providing flexibility in how your estate is managed. Common assets include real estate (houses, land), financial accounts (checking, savings, brokerage), stocks, bonds, mutual funds, life insurance policies, business interests, and personal property like vehicles, jewelry, or collectibles. It’s important to note that some assets, like retirement accounts (401(k)s and IRAs), may require specific strategies to transfer effectively without triggering immediate tax consequences – often a “pour-over” will is used in conjunction with a trust to capture any unintentionally excluded assets. For instance, a revocable living trust allows you to maintain control of your assets while you’re alive, acting as both trustee and beneficiary, and then designates successor trustees to manage and distribute those assets after your passing.
Why is funding a trust so important?
The primary benefit of funding a trust is avoiding probate, the court-supervised legal process of validating a will and distributing assets. Probate can be time-consuming—often taking months or even years—and expensive, with costs typically ranging from 5% to 10% of the estate’s value. A properly funded trust bypasses probate entirely, allowing for a faster, more private, and less costly transfer of assets to your beneficiaries. I recall a case where a client, Mr. Henderson, diligently created a trust but neglected to fund it. After his passing, his family faced a lengthy and costly probate battle over his beachfront property, racking up over $30,000 in legal fees and delaying their access to the inheritance for nearly a year. Had he simply transferred the deed to the trust, that entire ordeal could have been avoided.
What happens if I forget to fund my trust?
If a trust remains unfunded, it’s as if it never existed for estate planning purposes. Assets will be distributed according to state intestacy laws—meaning the state decides who gets what—or as dictated by a will, which then *requires* probate. This defeats the whole purpose of creating a trust in the first place. Furthermore, an unfunded trust can create disputes among family members who may disagree on how to interpret your wishes. I once met with a woman, Mrs. Albright, whose father had established a trust but hadn’t moved his primary residence into it. The oversight caused a significant legal battle with her siblings, as the property became subject to probate, delaying the distribution of the assets and fracturing their family relationship.
How can Steve Bliss help me fund my trust?
At Steve Bliss Law, we don’t just create trusts; we guide you through the entire funding process. Our team provides comprehensive assistance with asset titling, deed preparation, account transfer paperwork, and coordination with financial institutions. We understand the complexities of trust funding and ensure every step is taken correctly. A few years ago, a couple, the Millers, came to us after attempting to fund their trust themselves. They were overwhelmed by the paperwork and unsure about the correct procedures. We stepped in, reviewed their existing estate plan, and methodically transferred their assets into the trust, giving them peace of mind knowing their wishes would be honored. This is not simply a legal service; it’s about providing reassurance and ensuring a smooth transition for your loved ones. We recently assisted a client with over $5 million in assets; it was a complex situation, but through diligence and care, we flawlessly funded the trust, saving his heirs substantial time, expense, and emotional distress.
“Proper estate planning isn’t about death, it’s about life—ensuring your loved ones are taken care of according to your wishes.” – Steve Bliss.
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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 happens to my debts when I die?” Or “What should I do if I’m named in someone’s will?” or “Can retirement accounts be part of a living trust? and even: “What are the long-term effects of filing for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.