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Trust Funding: The Step That Makes or Breaks Your Plan

You created a trust. Great. But if you never moved your assets into it, your family is still going through probate. Trust funding is the most skipped step — and the most important one.

Key Points

Trust Funding Essentials

  1. 01

    What 'Funding' Means

    Funding a trust means re-titling your assets — home, bank accounts, investments — from your name into the trust's name. Without this step, the trust is an empty container.

  2. 02

    Your House Should Be in the Trust

    Real estate is the most important asset to transfer. If your house isn't in the trust, it goes through probate — the very thing the trust was designed to avoid.

  3. 03

    Bank Accounts Need Re-Titling

    Checking, savings, and brokerage accounts should be titled to the trust or have the trust named as beneficiary. This is simple but frequently skipped.

  4. 04

    Retirement Accounts Are Different

    You typically don't title 401(k)s and IRAs to the trust. Instead, you name the trust as beneficiary — but this has tax implications that require careful planning.

  5. 05

    Beneficiary Designations vs Trust Ownership

    Some assets pass by beneficiary designation, not title. These designations override your trust, so they must be coordinated to avoid conflicts.

  6. 06

    Unfunded Trusts Fail

    The #1 reason trusts don't work as intended: the assets were never transferred. An unfunded trust doesn't avoid probate — it guarantees it.

FAQ

Common questions

Next Steps

Get It Done Right

Every LegacyAccords plan includes trust funding guidance so your plan actually works.