After signing your trust documents, you might be tempted to think you are done with the estate planning process. Until your trust is properly funded, however, your planning is not complete. Without taking the additional steps of funding your trust, you won’t realize all the benefits of having a trust.

“Funding” your trust describes the process of transferring assets into the name of the trust. Generally, you should put all of your assets into your trust, which will include your house and other real estate, bank accounts, investments, and business interests. Assets controlled by beneficiary designations (like insurance) should name the trust as a beneficiary so they will be controlled by the terms of your trust. Special rules apply to retirement plans and IRAs, so you should talk with your attorney about those assets.

While the trust funding process is generally easy, people often get sidetracked before completing the process. It is key to remember that the trust only controls the assets you put into it and, until you change titles and beneficiary designations, your trust will not help you avoid probate. A good tip is to start with the most valuable items on your asset list and work your way down, while reminding yourself of the peace of mind you will have when your estate plan is fully in place.

Your attorney can help with the process and provide instructions or sample letters for you to use. Some institutions will require proof that your trust exists before re-titling assets. For these situations, you can supply a “Certificate of Trust.” This is an abstract of your trust that establishes the trust’s validity without revealing the details about how your estate will be distributed.

At Kling Law Offices, we will prepare deeds for re-titling real property and assist by recording them in the appropriate county. We also prepare a “pour-over will” that acts as a safety net at the time of death, catching individually owned assets and directing them to your trust. Nevertheless, you are ultimately responsible for making sure your assets are transferred into your trust. While your attorney may assist you in re-titling your assets, he or she simply does not have authority to change ownership of your real estate, financial accounts, and other assets on your behalf.

Along these lines, it is important to remember that the trustee you name controls the assets in your trust. With most revocable living trusts, you have named yourself as the trustee, so you are the decision-maker and have complete control of the trust assets. This means you can add or remove assets from the trust any time you need or want to do so.

If you have questions about the status of your trust’s assets, or need help completing the funding process, contact our office for a complimentary consultation. We would be happy to help you make the most of your trust and achieve the peace of mind you deserve from your estate plan.