AN UNFUNDED TRUST EQUALS PROBATE.
Imagine building a home but never moving into it. This is what happens, metaphorically speaking, when you draft a trust as part of your estate plan but fail to fund the trust.
“Funding your trust” is the process of transferring assets to your trust. It is accomplished by executing transfer-of-title documents on real and personal property (for example, a deed transferring title on your home to your trust) and designating your trust as the beneficiary of pay-on-death contracts (for example, naming your trust as beneficiary of your life insurance and annuity policies).
Many attorneys prepare living trusts for their clients, but they don’t fund their clients’ trusts. Instead, the clients go home with elaborate instructions on how to fund their own trusts, the result being that many trusts don’t get funded. What clients don’t understand is that an unfunded trust almost always means probate.
At HBAA, we prepare and file documentation necessary for you to fund at least one asset, often your home, into your trust, as a core component of our estate planning service. We are also prepared to help you fund all of your assets into your trust for a modest fee, usually between $500 and $1,000 for the typical estate plan.
Other areas of practice include:
- Estate Planning
- Estate Tax Planning
- Asset Protection
- Business Structuring
- Estate Administration
- Trust Administration
- Probate Services
- Disputes & Litigation
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