Failing to properly fund a trust is a surprisingly common, and potentially devastating, mistake that can completely negate the benefits of estate planning; essentially rendering the trust document useless—a beautifully crafted plan existing only on paper.
What assets should be included in my trust?
A trust, while expertly drafted by an attorney like Steve Bliss, isn’t automatically populated with your assets; it’s an empty container until you actively transfer ownership of your property into it. This process, known as funding the trust, involves changing the legal title of assets—like real estate, bank accounts, investment accounts, and even personal property—to be held *by* the trust, not in your individual name. Approximately 60% of trusts are never fully funded according to recent statistics, highlighting the importance of this step. Assets not titled in the trust’s name will likely have to go through probate, which can be costly, time-consuming, and public – the very things a trust is designed to avoid.
Can I still avoid probate if I forget an asset?
Let me tell you about old Mr. Henderson. He diligently created a trust with Steve Bliss years ago, feeling secure that his family would be protected. However, in his late eighties, he simply forgot about a small savings account he’d opened decades earlier, a relic from a summer job. After his passing, that account, totaling $8,000, was subject to probate; a minor inconvenience, yes, but a direct result of incomplete funding. While a forgotten asset might seem insignificant, it demonstrates the meticulousness required. Every asset, no matter how small, should be reviewed and titled appropriately. A fully funded trust provides a seamless transfer of assets, while even a single overlooked item can introduce delays and expenses.
What is a “pour-over” will, and how does it help?
A “pour-over” will acts as a safety net; it’s a last will and testament designed to “pour” any assets inadvertently left out of the trust into the trust upon your death. While helpful, it doesn’t eliminate probate entirely; those assets still have to go through the court process *before* being transferred into the trust. It’s an imperfect solution, adding cost and delay, but far better than having everything go through probate. Think of it like a backup plan—a good one to have, but not one you want to rely on. A well-funded trust aims for 100% asset coverage; the pour-over will addresses the inevitable human error. According to the American Academy of Estate Planning Attorneys, approximately 5-10% of assets are often caught by the pour-over will, demonstrating its usefulness as a safety measure.
How did my friend benefit from properly funding their trust?
My friend, Sarah, faced a challenging situation when her mother passed away suddenly. Fortunately, her mother had worked closely with Steve Bliss and diligently funded her trust. The transition was remarkably smooth. Within weeks, the assets were distributed to the beneficiaries according to the trust’s instructions, avoiding probate and minimizing emotional stress during a difficult time. Sarah often remarked how grateful she was that her mother took the time to do things correctly, allowing the family to focus on grieving rather than navigating legal complexities. This provided a stark contrast to her neighbor’s experience, whose father’s estate was tied up in probate for over a year.
Proper funding is the crucial final step in estate planning. It’s not simply about *having* a trust; it’s about ensuring that it *works* as intended. Ignoring this step is like building a beautiful boat but never launching it—all the effort is wasted. A little diligence upfront can save your loved ones significant time, expense, and heartache down the road.
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About Steve Bliss at Escondido Probate Law:
Escondido Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
| estate planning | revocable living trust | wills |
| living trust | family trust | irrevocable trust |
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/oKQi5hQwZ26gkzpe9
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Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “What professionals should be part of my estate planning team?” Or “Are retirement accounts subject to probate?” or “Can I be the trustee of my own living trust? and even: “How do I prepare for a bankruptcy filing?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.