Yes, absolutely you can, and in fact, it’s the most common way to establish and utilize a trust for estate planning purposes. Many people mistakenly believe a trust only comes into play *after* their passing, but a properly funded trust can offer benefits during your lifetime, such as managing assets if you become incapacitated, avoiding probate, and even tax advantages. A trust is merely a legal entity, a container if you will, and you, as the grantor, can transfer assets into that container at any time – while you are very much alive and well. This process of transferring ownership is called ‘funding’ the trust, and it’s crucial for the trust to function as intended.
What assets can I put in my trust?
Almost any asset can be transferred into a trust, including real estate, bank accounts, investment accounts (stocks, bonds, mutual funds), personal property (vehicles, jewelry, art), and even life insurance policies. However, it’s important to understand that not all assets *need* to be in the trust. For example, retirement accounts like 401(k)s and IRAs have specific rules about beneficiary designations, and transferring them directly into a trust can sometimes create unintended tax consequences. It’s often better to leave those assets with a designated beneficiary and coordinate with your trust. Approximately 55% of Americans do not have an updated will or trust, which means a significant portion of assets may be subject to probate, a potentially lengthy and costly court process.
What is the difference between a revocable and irrevocable trust for funding?
The type of trust you choose impacts how and when you can fund it. A revocable trust – the most common type – allows you to maintain control of your assets and make changes to the trust terms, including adding or removing assets, throughout your lifetime. You can fund it incrementally, transferring assets as you see fit. An irrevocable trust, on the other hand, generally does not allow for changes once it’s established. Funding an irrevocable trust usually involves a one-time transfer of assets, and you relinquish control. “People often think of estate planning as something to do when they’re older,” Steve Bliss often says, “but starting earlier allows you to thoughtfully manage your assets and ensure your wishes are carried out, whether during your life or after.” A well-funded trust can also protect your assets from potential creditors.
I heard a story about a family who didn’t fund their trust; what happened?
Old Man Tiberius was a shrewd man, a collector of antique clocks and a man of meticulous habits. He spent a considerable amount of money creating a trust to protect his family and legacy, but he never actually transferred ownership of his assets into it. When he unexpectedly passed away after a brief illness, his family found themselves embroiled in a frustrating and expensive probate battle. The court fees, legal expenses, and delays ate away at the estate, significantly reducing what was left for his heirs. It turns out, that while the trust document was beautifully drafted, it was essentially a useless piece of paper because it wasn’t funded. His family learned a painful lesson – creating a trust is only half the battle; funding it is what makes it work.
How did another family avoid similar issues by properly funding their trust?
The Hamiltons, a busy family with two young children, proactively worked with Steve Bliss to establish a trust and systematically transfer their assets into it over a period of months. They started with their real estate, then moved on to bank and investment accounts. They made a simple spreadsheet to track the assets they transferred, ensuring everything was properly titled in the name of the trust. When the mother unexpectedly suffered a stroke and became incapacitated, the trustee was able to seamlessly step in and manage the family’s finances and provide for their needs. Because the trust was properly funded, the family avoided the lengthy and stressful process of guardianship and conservatorship. “It was a huge relief knowing that our finances were protected and that our children would be taken care of,” the father shared, “Steve’s guidance was invaluable.” It proved that proactively funding a trust provides peace of mind and ensures your wishes are carried out when you need it most.
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About Steve Bliss at Escondido Probate Law:
Escondido Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
banckruptcy attorney
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/oKQi5hQwZ26gkzpe9
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Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “What happens if I die without a will?” Or “What if the estate doesn’t have enough money to pay all the debts?” or “How do I transfer assets into my living trust? and even: “What happens to my retirement accounts if I file for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.