If you’ve created a Revocable Living Trust, you’ve taken an important step in protecting your estate and avoiding probate. But unless your trust is properly funded, it may not work as intended. Funding is the crucial final step in any trust-based estate plan.
At Fishbein Law Group, we educate every client on the importance of funding and provide guidance throughout the process. In this article, we’ll explain what trust funding involves, why it’s essential, and how working with an experienced estate planning attorney can ensure your plan is fully effective.
What Is Trust Funding?
Trust funding is the process of transferring ownership of your assets into the name of your Revocable Living Trust. For some assets, this means changing titles. For others, it means updating beneficiary designations to align with the trust.
Commonly funded assets include:
- Real estate
- Bank and brokerage accounts
- Non-retirement investment accounts
- Business interests
- Personal property
Some assets, such as retirement accounts and life insurance, are not typically retitled but require careful coordination of beneficiary designations.
Why Funding Matters
Even a well-drafted trust won’t avoid probate if it isn’t funded. If your assets remain in your individual name at the time of death, they may still need to go through probate, defeating one of the primary benefits of having a trust.
Properly funded trusts:
- Avoid probate and court involvement
- Provide clear legal authority for your trustee to act
- Preserve privacy by avoiding public court filings
- Allow for smoother and faster administration
Unfunded or partially funded trusts often result in unnecessary legal fees, delays, and family frustration.
How We Help Clients Fund Their Trust
At Fishbein Law Group, we provide clear guidance and hands-on support for funding. Our process includes:
- Preparing and recording deeds to transfer real estate into the trust
- Providing instructions for retitling bank and investment accounts
- Reviewing beneficiary designations for retirement accounts and life insurance
- Preparing an Assignment of Personal Property to transfer tangible assets such as furniture, jewelry, and firearms
- Advising on how to transfer or assign interests in businesses and other unique assets
We also help clients understand which assets should remain outside the trust and how to keep funding updated as new assets are acquired.
Arizona-Specific Options: Motor Vehicles and Personal Property
In Arizona, there are two common ways to handle motor vehicles:
- Retitle the vehicle in the name of your trust
- Complete a Beneficiary Designation form with the Arizona Department of Transportation
For personal property (furniture, artwork, household items, etc.), we include an Assignment of Personal Property signed at the time of execution. This formal assignment brings most of your tangible personal effects into the trust.
The Risk of an Unfunded Trust
Failing to fund your trust creates significant risk:
- Assets may go through probate
- Successor trustees may lack authority
- Your estate plan may not reflect your intent
Think of a trust like a safe—it only protects what you put inside. Funding ensures your assets are covered.
Keeping Your Trust Funded Over Time
Trust funding is not just a one-time task. Whenever you acquire a new asset, open a new account, or change the ownership of property, those assets should be reviewed for proper titling. As part of our ongoing support, we:
- Educate clients on how to title new assets
- Offer review services to assess funding completeness
- Maintain digital records and funding checklists
Conclusion
A Living Trust without proper funding is like an empty vessel. To ensure your plan works as intended, funding is essential. At Fishbein Law Group, we help clients take this final and critical step toward a complete, working estate plan.
Contact us today to schedule a consultation or trust funding review.
For more information on Tempe Estate Planning Attorneys, or if you would like a Living Trust Attorney in Tempe, or know more about Medical Powers of Attorney, call Fishbein Law Group at (480) 920-1000 for a courtesy conversation.
The text above is for general informational purposes and should not be considered legal advice.