Avoiding Estate Planning Mistakes: Unfunded Living Trusts

When used properly, living trusts can be valuable tools for passing on assets. When planned for early on, you can really maximize what a beneficiary gets out of a living trust. Unfortunately, individuals don’t always plan correctly with the living trust. If you forget to put any assets into the trust, for example, you’ll miss out on the opportunity for assets to be passed to heirs outside of the probate process. After the trust is set up, you’ll need to retitle assets into the trust’s name.

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Simply listing the assets you plan to transfer with a schedule attached to the trust may not be enough. The schedule is more like a notification of the assets you do plan to transfer, but it doesn’t necessarily mean that you’ve actually transferred those assets. Real property is going to require a deed and bank and stock accounts will need to be retitled by financial institutions. You can speak with a professional estate planner to learn more about the steps to follow after establishing a living trust.