Creating a revocable living trust is an important first step in estate planning. However, that alone is not enough. To make the trust effective, assets must be properly transferred into it. This process, known as “funding” the trust, is what gives the trust legal control over your property. Without funding, the trust cannot do what it is meant to do: avoid probate, manage assets during incapacity, and distribute property privately after death.
Funding a trust means retitling your assets so the trust becomes the legal owner. In Florida, this usually includes:
Even vehicles, safe deposit boxes, and life insurance policies may require attention. If these steps are skipped or done incorrectly, your assets could be dragged into probate anyway.
Many people mistakenly believe that signing the trust documents is the final step. However, failing to fund the trust leaves those assets exposed.
For example, if a home is still titled in your personal name, it will not be protected by the trust and must go through probate. Additionally, outdated beneficiary designations, such as an old retirement account listing an ex-spouse, can override the instructions of your trust. These oversights create confusion and delays that frustrate your loved ones.
Asset funding is not a one-time task. Life changes often require updates, such as after buying a new home or opening a new account. Reviewing your trust annually or after major life events can help ensure your assets are still properly titled. Without regular updates, even a well-drafted trust can lose its value over time.
At Schnauss Naugle Law, we help Florida residents protect their assets. We make sure their trusts are fully funded and up to date. If you are unsure whether your trust is properly funded or need help retitling assets, reach out to us. Contact us today to schedule a consultation.
