I Signed My Trust… Now What? (Or, Why Funding Your Trust Is Just as Important as Creating It)
So, you did the hard part! You made it through the thoughtful considerations prior to our consultation, you signed your documents, and you have everything organized in your estate planning binder that we gave you.
Take a moment to feel good. Really. Most people never get this far.
Now comes the part that’s easy to forget but is critically important: funding your trust.
What Is “Funding” a Trust?
“Funding” your trust simply means changing the ownership or beneficiary designation of your assets so they’re connected to your trust.
- We may already have helped you retitle real estate via a deed, or prepared an Assignment of Interest or a new stock certificate or membership unit certificate to transfer your business ownership
- You may use beneficiary designations to move assets such as life insurance or retirement plans or brokerage accounts into your trust when you get on the bus
- Payable on death designations may be appropriate for other assets.
If you don’t fund your trust, it’s like buying a brand-new safe, locking it, and then… leaving your valuables right where they’ve always been.
Without a Properly Funded Trust, You’ll Have a Probate
Your trust only controls what goes through it. If your accounts and property aren’t connected to your trust, they may need to go through probate to transfer title after your death, which is exactly what we were trying to avoid.
Not everything needs to be titled in the name of your trust now, but everything does have to be titled in a way to flow through your trust at your death.
Don’t be overwhelmed. You don’t have to do everything in one afternoon. You can tackle your list methodically over time. But if you’re someone who knows you’ll do better by blocking out one day to knock it out, do your future self and your loved ones a favor, put it on your calendar, and just do it.
Call it “Trust Tuesday.” Bring snacks.
True Story: “We Never Got Around to It…”
We hear this all the time. “We came out of your office with a big, beautiful binder… and then life happened. We meant to fund the trust, but we never got around to it.”
We don’t want your loved ones to navigate probate for assets that should’ve been funded in the trust all along.
So if that’s you?
No guilt.
No shame.
Just start now.
Need a Refresher?
We’re here if you need help. Whether you’ve lost your checklist, forgot what we talked about, or just want a pep talk, we’re a phone call away.
In the meantime, go take one item off your funding list or calendar that “Trust Tuesday.” You’ll feel great. We promise.