Legal News: What Does it Mean to Fund a Trust?

To fund a trust is an essential step in setting up your Trust.  To fund a trust simply means that you need to transfer your assets into the name of your trust.  In order to do this, you must ensure that you title in the name of your trust the assets that you intend to transfer.  Your Trustees will not have control of your assets unless your properly title  your assets in the name of the trust.

Many people fail to fund their trust properly and this is a major disadvantage.  Without a properly funded Trust, your assets would have to go through Probate Court.  That is why is it important to get all of your assets into the Trust by changing the title of your assets to the name of your Trust.

You can begin funding your Trust once it is signed and executed.  It is important to fund it as soon as possible in order to ensure that your Trust is working effectively and to avoid Probate.  While there is no time limit to when you must fund your Trust by, it is advised that you fund it initially and ensure that any new accounts created later on are created in the name of the Trust.

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