Not All Trusts Are The Same
A trust is an agreement. A trust can include many different terms to describe many different circumstances. The type of trust agreement typically used in estate planning is called a revocable living trust. The revocable living trust can include many different terms to describe many different circumstances. A revocable living trust can be modified, terminated, or changed at any time by the person who creates it.
A revocable living trust can be funded or unfunded. The difference between a funded and unfunded trust is whether you transfer your assets into the name of the trust during your lifetime. If you do, your trust is funded. If you don’t, it is unfunded.
An unfunded living trust is little better than a simple will for planning your estate but it is much more expensive. You pay the cost of the initial plan. When you die, you must transfer the assets in your name through a probate process using your will. Because your assets are not in your trust, you do not avoid probate with an unfunded trust.
To remedy this problem, you should fund your living trust. We will help you learn how to fund your trust. We will also be here to help you when you have questions in the future. When you fund your trust during your lifetime you use some of the greatest benefits the revocable living trust provides for you.