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ResolutionFunding Your Living Trust
What does it mean to fund your trust?
It means transferring title of your property and other assets out of your name as an individual and into the name of your living trust. In order to gain all of the benefits derived from your revocable living trust, it is important to properly title your assets in the name of your trust. This titling process is called “funding.”
Think of your living trust as a bucket that holds title to your real estate and money accounts. The trust language identifies who is to manage your assets and what they are to do if you become incapacitated, and also who is to receive your assets after you’re gone. If you don’t transfer your assets to the trust while you’re alive and competent then the Probate court has to do it for you before the terms of your living trust can control the disposition of your estate.
Why it is important to fund your trust?
The primary purpose of funding your trust is to avoid probate. Assets in your own name at the time of your death will require probate. Assets in the name of your trust at the time of your death will bypass probate. Probate is a public proceeding so anyone can go into court and find out what you had and who you left it to regardless of whether they are related to you or not. Probate is time consuming and takes a minimum of seven to eight months. During this time the assets are frozen and hard for your loved ones to access if they need them. Probate is also expensive. With a revocable living trust you can avoid probate.
Contact the estate planning attorneys of Tuesley Hall Konopa, LLP for a free initial consultation. Make a living trust part of your complete estate plan. We offer a free initial consultation.
