Over the years, I’ve discovered that many people make a mistake with their trust that catapults their assets and loved ones right into the court system. Most of our clients want to avoid probate because it has a reputation for being expensive, time consuming, stressful – and public, meaning anyone anywhere can see who got what and how to contact them. Beneficiaries may become victims to nosey neighbors, predators, and unscrupulous “charities.”
What’s the one mistake that causes all these problems?
An unfunded trust.
For many people, avoiding probate court is a main reason they set up a revocable living trust in the first place. Unfortunately, you are not “done” when the trust documents are signed. If you don’t take the next step to fund, probate court is guaranteed. Funding a trust is simply the process of transferring assets from your name into the name of your trust. Often, beneficiary designations are changed to your trust as well. In general, you will probably want to fund assets into your trust such as real estate, bank accounts, investment accounts, life insurance, and business interests. If you aren’t sure what should go into your trust and what should stay out, feel free to reach out to me at (480) 719-7333.