The 3 Things That Might Happen If You Don’t Fund Your Trust

A trust can be used to bypass all sorts of problems: creditors trying to claim your assets and the costs/delays associated with the probate process, to name two examples.

To ensure that your trust is able to protect your assets from creditors while bypassing the probate process, it is of the utmost importance that you fund your trust in the proper manner.

Going over the three things that might happen if you don’t fund your trust, and speaking with a Florida estate planning lawyer at the Millhorn Elder Law Planning Group will help you develop a trust that satisfies your goals. 

01: Your Assets Go Into Your Trust 

Many estates are comprised of a trust that exists alongside a will. And, depending on how this will is developed, the assets not in your trust may flow directly into it, in the event of your passing.

Just as an example, if you own an iPad and couch, neither of which is in your trust, those items may go into your trust after your passing.

Even though the above can happen, it is never a guarantee. You must work with someone who knows how to establish a trust/will that allows any remaining assets to go into your trust.

In the event that the assets you own do not go into your trust, they will likely go through probate. Or, they may not go to your chosen beneficiaries, at all. 

02: Your Assets Do Not Go To Your Chosen Beneficiaries 

Just as we suggested in the previous section, if you do not fund your trust, there is a chance your assets may not go to your chosen beneficiaries.

Instead of going to your chosen beneficiaries, your assets may go to your next of kin. Or, anyone else that corresponds with Florida’s intestacy laws.

To prevent this from happening, you must fund your trust. But, that’s not all: you must clarify your beneficiaries and, in turn, the assets you would like to give each one of these beneficiaries.

Even if you do not fund your trust, you can make sure your assets go to your chosen beneficiaries by listing them in your will. This doesn’t mean that they will get everything, though; probate fees can deplete your estate. 

03: Your Assets Are Forced Go Through Probate 

The probate process is used to determine the validity of your will, while also ensuring that the wishes outlined within your will are satisfied.

To pay for the probate process, your estate will be drained. And, as a result of this, some of your estate’s value will have been diluted, by the time the probate process concludes.

Your beneficiaries will need to wait a while, before they can receive the assets you wish to give them. The exact period of time tends to vary, but it will likely be somewhere around nine months after your passing.

Given the facts outlined above, if you want your beneficiaries to receive their assets quickly, you should develop a trust. And, more importantly, you should remember to fund this trust. 

Speak With A Florida Estate Planning Lawyer Today 

If you would like to develop a trust that satisfies your estate planning goals, you should think about working with a legal professional.

Speak with a Florida estate planning lawyer today and we will help you develop a trust that meets your estate planning needs.

Sources: 

help.flcourts.gov/Other-Resources/Probate

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0732/0732.html