Why Your Trust Might Not Be Working (and How to Fix It)

Many people assume that once they set up a trust, their assets are automatically protected from probate. Unfortunately, this is not always the case. A trust is only effective if it is properly funded with the assets it is meant to protect. Let’s explore why a trust might fail and how you can make sure your estate plan works when you need it.

The Real-Life Story:

One of our clients came to us after his father passed away. His dad had a trust and had worked with a lawyer to set it up. When we reviewed the document, we found that no assets were actually placed into the trust. As a result, the family still had to go through probate.

The son could not understand why the trust did not work. He kept saying that his father had taken the time to create the trust. The answer was simple: the assets were not properly funded into it.

Why a Trust Needs to Be Funded:

A trust only works if you actively place your assets into it. Real estate, financial accounts, investments, and other valuables must be titled in the name of your trust. Simply creating a trust and signing documents does not complete the process.

Think of it as a safety deposit box. It only protects what you put inside. Leaving assets outside the trust means they are not protected and may still go through probate.

What Happens If Your Trust Is Not Funded:

If your assets are not correctly placed into your trust, your estate may still go through probate. This defeats the purpose of creating the trust in the first place.

It is crucial to make sure your trust is fully funded. This ensures that your wishes are honored and your loved ones are protected.

How to Ensure Your Trust Works:

1. Double-Check Your Assets:Make sure your real estate, financial accounts, and other valuables are titled in the name of your trust. Check with your attorney to verify that the funding process is complete.

2. Update Regularly:Life changes, and your trust should change with it. Update your trust after major life events such as purchasing a new home, getting married, or having children.

3. Get Professional Help:Working with an estate planning attorney ensures that your trust is set up and funded correctly. It is important to have professional guidance to avoid costly mistakes.

A trust can be a powerful tool to protect your legacy. It only works if it is funded correctly.

Make sure your family does not face unexpected probate issues. Double-check your estate plan today.

📅 Secure Your Legacy: Book a free consultation https://book.entrustedlegacy.law/#/introcall