 | So right about now you're probably wondering- "What the heck is trust funding?" Most people have never heard of it. Well, if that's you and you have a trust plan, chances are that your trust is going to fall flat on its face. |
A trust is an entity which can manage and direct your affairs in your absence. It's kind of like buying a safe to keep your valuables in. The problem is many people form a trust and fail to put anything in it. In order for a safe to protect anything, there needs to be something in it. Similarly, in order for a trust to manage anything there has to be property in it- otherwise your estate will still go through probate, it will still be subject to creditors, attorney's fees, court costs, and delays.
Granted, assuming that you have a proper trust plan (which many people don't have- by the way) it will include a pour over will which will help to streamline any probate process and put all the estate property into the trust where it can then be managed according to the terms in the trust. But, why go through the hassle, when a properly funded trust will avoid probate completely, avoid the delays, the costs, and the publicity.
Many cut rate trust programs will fail to properly instruct clients on funding their trust. The best way to ensure your trust plan works is through personalized planning with careful attention to possible legal reprecussions. For instance, your home should be funded into (or placed in the name of) your trust. But should your investment properties? Should your life insurance? Should your retirement accounts? How about tangible personal property?
As you can see there are many things to consider, but as a general rule everything you own should either be owned in the name of your trust (owned by trustee of the Sample trust dated January 1, of whatever) or pass to named beneficiaries outside of probate, for instance through joint tenancy ownership or through contractual terms, etc. Sometimes it is best to not have certain accounts/ policies owned by the trust but have them payable on death to the trust. Your specific needs will vary, but one thing is for sure- you need to consider them and you need to fund your trust!
At Inter Vivos, PLLC we ensure that each and every trust we create is properly funded from the beginning. If you would like to visit us for a free review of your trust plan, Call (801) 477-1570.
"Let Us Earn Your Family's Trust"
Granted, assuming that you have a proper trust plan (which many people don't have- by the way) it will include a pour over will which will help to streamline any probate process and put all the estate property into the trust where it can then be managed according to the terms in the trust. But, why go through the hassle, when a properly funded trust will avoid probate completely, avoid the delays, the costs, and the publicity.
Many cut rate trust programs will fail to properly instruct clients on funding their trust. The best way to ensure your trust plan works is through personalized planning with careful attention to possible legal reprecussions. For instance, your home should be funded into (or placed in the name of) your trust. But should your investment properties? Should your life insurance? Should your retirement accounts? How about tangible personal property?
As you can see there are many things to consider, but as a general rule everything you own should either be owned in the name of your trust (owned by trustee of the Sample trust dated January 1, of whatever) or pass to named beneficiaries outside of probate, for instance through joint tenancy ownership or through contractual terms, etc. Sometimes it is best to not have certain accounts/ policies owned by the trust but have them payable on death to the trust. Your specific needs will vary, but one thing is for sure- you need to consider them and you need to fund your trust!
At Inter Vivos, PLLC we ensure that each and every trust we create is properly funded from the beginning. If you would like to visit us for a free review of your trust plan, Call (801) 477-1570.
"Let Us Earn Your Family's Trust"
RSS Feed
