Funding Your Trust
A trust agreement is an amazing legal document with the ability to protect your estate from probate, unnecessary taxes, creditors and predators. Yet, for the trust to be effective – it must be “funded.”
So, how does one “fund their trust?” – And what does it mean to do so?
“Funding your trust” means to transfer ownership of your assets from yourself to your trust. So, if you owned a house for example, you would change the title from your individual name (or joint names), to the name of the trust.
This process must be done for the trust to have any effect on how your property is transferred after death. Unless you title the property in the name of the trust, you cannot “fund the trust.” Thus, the trustee cannot control the property. As a result, the property will be subject to probate after death.
Although a person doesn’t have to “fund the trust” immediately upon receiving their estate plan, it is advisable to do so.
Aside from your home and/or other real estate properties, you might want to add other assets to your trust, including (but not limited to): CD’s, stocks, mutual funds, oil and gas interests.
Of course, what you choose to include in your trust in entirely your decision. The structure and content of your trust should be specifically drafted to your individual needs and wishes.
To learn more about funding a trust, or other estate planning options, please consult a qualified estate planning attorney.
