Creating a trust is one of the smartest moves you can make in your estate plan. It helps your loved ones avoid probate, keeps your affairs private, and gives you control over how your assets are distributed.

But here’s the mistake too many people make: they stop after signing the trust documents. If you don’t transfer certain assets into the trust and update beneficiary designations on others, it’s like building a safe and never putting anything inside. The trust won’t actually work the way you intended.

What Funding Your Trust Really Means

Funding a trust means transferring ownership of certain assets from your name into the name of the trust. You, as the grantor, have created a legal entity, and it needs to own or be named as the beneficiary of the assets you want it to manage and eventually distribute. This process often includes retitling real estate and bank accounts, as well as updating beneficiary designations on assets like life insurance policies and retirement accounts.

For example, instead of your home title reading “John and Mary Smith,” it should read “John and Mary Smith, Trustees of the Smith Family Trust dated 11-03-2025.” The same concept applies to other assets—your bank accounts, real estate, and sometimes even vehicles.

Without that transfer, the trust is empty. Any assets still in your personal name at death may have to go through probate, the very process you were trying to avoid.

Why Proper Funding Matters More Than You Think

Most people create a trust to make life easier for their loved ones—but an unfunded or partially funded trust does the opposite. Here’s why funding matters so much:

• It avoids probate: Assets titled in the name of your trust are administered according to the trust’s terms, which means they can be distributed to beneficiaries without court involvement.
• It ensures your wishes are followed: Your trustee can manage and distribute property according to the trust terms.
• It keeps your estate private: Probate is public. A funded trust keeps your financial details confidential.
• It saves time and money: Skipping probate means faster distributions and fewer legal fees for your family.

Without funding, your estate plan can unravel. Your loved ones might face months of delays, extra court costs, and unnecessary stress—all because one crucial step was skipped.

The Types of Assets You Should Fund

Every estate plan is unique, but most trusts are funded with a mix of real estate, financial accounts, and personal property. The goal is to make sure each asset is either owned by the trust or properly coordinated with it through beneficiary designations. Here’s how common assets are handled:

1. Real estate: Deeds should be retitled to the trust. This includes your primary residence, vacation homes, and any rental properties. Your attorney can prepare new deeds and ensure transfers are recorded correctly.
2. Bank accounts: Checking, savings, and money market accounts can typically be retitled into the trust’s name. Your bank will provide the necessary forms to complete the process.
3. Life insurance and annuities: Rather than transferring ownership, you can name the trust as a beneficiary so the proceeds flow directly into it at your death. This avoids probate and allows your trustee to manage or distribute the funds according to your wishes.
4. Retirement accounts (IRAs, 401(k)s, and similar plans): These accounts should not be retitled into your trust, as doing so can trigger taxes and penalties. Instead, review your beneficiary designations carefully. If you’re married, your spouse is typically listed as the primary beneficiary to preserve tax advantages and rollover options. The trust can be named as a contingent or secondary beneficiary, ensuring the assets are distributed under your trust’s terms.
5. Business interests and vehicles: Ownership interests in a small business can often be transferred into the trust, depending on the entity type and governing documents. Vehicles can also be retitled, though some people prefer to leave them out depending on state law and insurance considerations.
6. Personal property: Household items, jewelry, and collectibles can be transferred into the trust with a simple written assignment of personal property.

The key is coordination and accuracy. If you want an asset governed by your trust’s terms, make sure it’s either owned by or payable to the trust—or has the proper beneficiary designations in place to work alongside it.

Secure Your Legacy the Right Way

Creating a trust is one of the best ways to plan your estate and make things easier for your family—but it only works properly if you fund it. Without that step, your estate plan is incomplete and probate could still be waiting around the corner.

At Legacy Law Group, we guide you through every stage of the estate planning process, from drafting your documents to helping you understand how to properly fund your trust. Our attorneys provide clear instructions and support so your plan works as intended.

Don’t leave your trust empty. Schedule a consultation with Legacy Law Group today to make sure your estate plan truly works for you and your family.