What does funding a Revocable Living Trust mean?
The expression funding a trust simply refers to the act of transferring the ownership of assets that are in your name as an individual into the name of your Revocable Living Trust. It also refers to changing the beneficiary designation of life insurance, retirement plans, and other arrangements to the name of your trust. Funding your Living Trust is critical. Only if all your assets are placed in your trust can you expect to totally avoid probate upon your disability and death. Additionally, your trust cannot control what it does not own. If your assets are not in the name of your Living Trust, the terms of your trust may not have any control over those assets. Not having your assets in the name of your trust could totally thwart your federal estate tax planning and cost you thousands of dollars in unnecessary death taxes. In order to make certain your estate planning goals and desires are achieved, your Living Trust should be funded. Unfortunately, many people with bare-bones Living T
