Why Trust Funding Matters
A living trust can only manage and distribute assets it owns. If your home is still in your personal name, your trust cannot keep it out of probate. The same goes for bank accounts, investment accounts, and other property.
Trust funding is the step most people skip or do halfway. It is the top reason trusts fail to avoid probate. At RJP, a dedicated planning specialist walks every client through the funding process.
What Gets Funded Into a Trust
- Real estate: A new deed transfers ownership from your name to the trust
- Bank accounts: Retitled or set up with the trust as owner
- Investment and brokerage accounts: Retitled into the trust
- Business interests: Membership interests or shares transferred to the trust
What Does Not Go Into a Trust
Some assets should not go in a trust. These include retirement accounts (IRAs, 401(k)s) and life insurance policies. They use beneficiary designations instead. Those designations should be coordinated with your trust.
How to Fund a Trust: Full Guide
Our guide covers real estate transfers, bank retitling, and retirement coordination: How to Fund Your Trust Step by Step.
After You Create a Living Trust
Funding is just the first step. See the full trust lifecycle in our guide: What to Do After You Create a Living Trust.