Creating trust is a major step in protecting your assets and ensuring your wishes are carried out. But many people make the mistake of thinking the job is done once the ink is dry. The truth is, an unfunded trust is like an empty safe—it exists, but it doesn’t actually hold anything of value.
What does it mean to “fund” your trust?
Funding simply means transferring ownership of your assets into the name of the trust. This may involve re-titling bank accounts, updating beneficiary designations, or recording new deeds for real estate. Without these steps, your trust won’t control your property when it matters most.
Why does it matter?
If your trust isn’t funded, your assets could end up going through probate—the very process the trust was designed to avoid. That can mean added time, cost, and stress for your loved ones. Proper funding ensures that your trustee can manage your property seamlessly if you become incapacitated and distribute it according to your wishes when you pass away.
The takeaway:
Think of your trust as a car. Drafting and signing the trust document is like buying the car—but funding is putting gas in the tank. Without funding, your trust can’t take you anywhere.
At The Woods Law Office, we don’t just help clients create their trusts—we guide them through the critical process of funding, so their estate plan actually works when it’s needed most.
