Trust Funding: Setting Your Trustee Up for Success
Creating a trust is one of the most powerful estate planning tools available — but a trust is only as effective as the assets placed inside it. Many families make the mistake of completing a trust document but never “funding” it, leaving the trustee with a plan that can’t actually work.
What Does It Mean to Fund a Trust?
Funding a trust means transferring ownership of your assets — such as real estate, bank accounts, investments, or business interests — into the name of your trust. Without this crucial step, those assets may still go through probate, defeating one of the main purposes of the trust.
Why Funding Matters
A well-funded trust ensures that:
Your assets are managed according to your wishes.
Your trustee has the legal authority to act.
Your beneficiaries receive their inheritance smoothly and privately.
Probate and court delays are avoided.
Steps to Properly Fund Your Trust
Retitle Assets: Change ownership on deeds, titles, and financial accounts to the name of the trust.
Update Beneficiary Designations: Make sure life insurance and retirement accounts coordinate with your trust plan.
Include Tangible Assets: Personal property, collections, or family heirlooms should also be listed.
Keep Records: Maintain a funding schedule — a list of every asset transferred into the trust.
Work with Your Attorney: Periodically review your trust funding with your estate planning attorney to ensure new assets are added over time.
Empowering Your Trustee
A well-prepared trustee can only manage what’s inside the trust. If key assets are left out, they’re left powerless to carry out your instructions. Trust funding gives them the clarity, authority, and structure they need to succeed — and ensures your legacy is honored exactly as you intended.