The one facet of a Last Will and Testament that appeals to many individuals is that it is generally easier, faster, and more affordable to establish than a living trust. Namely, after writing up your will, you may sign the bottom of the document and go on your merry way. However, with a trust, your work does not stop with your signature. Rather, one of the most important steps of this planning process is that you need to fund it. With that being said, read on to discover the steps towards funding a living trust and how a seasoned Broward County trust lawyer at The Probate Lawyers can help you do so effectively.
What are the steps for funding a living trust?
Essentially, funding your living trust means transferring your assets over to it. So, you must change the titles of your assets from your individual name to reflect the name of your living trust. Then, you must change the beneficiary designations of your assets from your loved ones’ names to reflect the name of your living trust.
While you may be responsible for ensuring all your intended assets are transferred to your trust, your lawyer may work on your behalf for your complex assets, such as your real estate properties. What’s more, your lawyer may assist you in establishing a pour-over will. In a way, this serves as a safety net and catches any assets you forgot to transfer into your trust when initially establishing it.
What happens if I do not properly fund a living trust?
Your living trust may lose its main functionality if you do not take the steps to fund it properly. That is, the primary purpose of a trust is so that your assets do not have to undergo probate proceedings, or court interference in any capacity, when you, sadly, pass on. You can only protect your assets from probate if they are transferred to your trust directly. So such protections are not made possible if you do not fund your trust with any assets.
Another way to look at it is that you must change the names of your titles and beneficiary designations now; so that a court does not have to interfere and do so on your behalf when you are no longer around. Of note, with your pour-over will, it may still be necessary to have a court interference. But once the assets in your pour-over will go through probate, they may be distributed as you instructed in your living trust.
We strongly encourage you to retain the services of a competent Broward County estate lawyer. You may do so by scheduling a free initial consultation with The Probate Lawyers at your earliest convenience.
