Tuesday, July 14, 2020
Trust funding is a critical step in estate planning. Many people either overlook this step or fall victim to procrastination and never get to it. If properly done, trust funding will avoid probate, provide for you in the event of your incapacity, and save on estate taxes.
With a revocable trust, you have control over the trust and can make changes and amendments during your lifetime. Think of the trust like an empty box: you can fill it up now, or on your death. If you transfer assets to the trust now, the executor of your will does not need to do that on your death. The trust is already funded.
You want to make sure to protect yourself and your family if you become incapacitated. A revocable trust is another way to ensure that you and your family have that protection. Funding the trust now will enable the successor trustee to manage the assets for you and your family in that instance.
Depending on what state you live in, the trust can also reduce state estate taxes.
You worked hard on updating your estate plan. Take the final step and fund your trust now to get the most out of your updated documents.
See Christine Fletcher, Don’t Overlook Your Trust Funding, Forbes, July 13, 2020.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.