Is Your Revocable Trust Properly Funded?

If you have a Revocable Living Trust (RLT) make sure it is properly funded.  Funding is the process of re-titling assets (changing ownership) to the name of your Trust or making your RLT the primary or secondary beneficiary of assets that require a beneficiary designation (e.g., retirement plans or insurance policies). 

If your assets are not titled in the name of your RLT before you pass away, those assets will have to go through probate, which defeats one of the main purposes of having a RLT (avoiding probate).  

Also, if you have a RLT as part of your incapacity/disability plan and the Trust is not properly funded, the trustee cannot manage or use the Trust for your benefit while you are incapacitated.  Your loved ones will have to go through the court-imposed process called Guardianship or Conservatorship to appoint a guardian or conservator for you.  This means that state law and not someone you choose will decide how you should be taken care of and how your assets should be managed and spent.

Many people have an RLT as part of their estate plan to avoid the cost and delay of probate, but fail to fund their Trust before they pass away.  This results in a Trust that will not work and a huge waste of money.

If you want to protect your assets and family with an estate plan but don't know where to begin, then request a FREE copy of our Estate Planning E-Book and Newsletter and discover:

• How to create an estate plan to protect you and your family
• If you should be concerned about estate taxes
• The 4 basic requirements for a valid will
• 7 important questions you should consider when making a will
• How to protect yourself and family if you become incapacitated or disabled
• The advantages and disadvantages of a trust
• Other estate planning tools everyone should know about

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