[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.amorusolaw.com\/blog\/that-last-step-trust-funding-greenwich-ct-white-plains-ny\/#BlogPosting","mainEntityOfPage":"https:\/\/www.amorusolaw.com\/blog\/that-last-step-trust-funding-greenwich-ct-white-plains-ny\/","headline":"That Last Step: Trust Funding","name":"That Last Step: Trust Funding","description":"\u201cIf you have updated your estate plan during the Covid crisis and even found a way to sign your documents while maintaining social distance, do not overlook the last step of trust funding.\u201d Neglecting to fund trusts is a surprisingly common mistake, and one that can undo the best estate and tax plans. Many people […]","datePublished":"2020-08-13","dateModified":"2023-07-29","author":{"@type":"Person","@id":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/#Person","name":"Amoruso & Amoruso LLP","url":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/","identifier":5,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Amoruso & Amoruso LLP","logo":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","width":0,"height":0}},"image":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0263e95bfa49.jpg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0263e95bfa49.jpg","height":1067,"width":1600},"url":"https:\/\/www.amorusolaw.com\/blog\/that-last-step-trust-funding-greenwich-ct-white-plains-ny\/","about":["Beneficiary","Estate Planning","Incapacity","Second Marriage","Successor Trustee","Surviving Spouse","Taxes","Trusts"],"wordCount":588,"keywords":["Beneficiary","Estate Planning","Incapacity","Second Marriage","Successor Trustee","Surviving Spouse","Taxes","Trusts"],"articleBody":"\u201cIf you have updated your estate plan during the Covid crisis and even found a way to sign your documents while maintaining social distance, do not overlook the last step of trust funding.\u201dNeglecting to fund trusts is a surprisingly common mistake, and one that can undo the best estate and tax plans. Many people put it on the back burner, then forget about it, says the article “Don\u2019t Overlook Your Trust Funding” from Forbes.Done properly, trust funding helps avoid probate, provides for you and your family in the event of incapacity and helps save on estate taxes.Creating a revocable trust gives you control. With a revocable trust, you can make changes to the trust while you are living, including funding. Think of a trust like an empty box\u2014you can put assets in it now, or after you pass. If you transfer assets to the trust now, however, your executor won\u2019t have to do it when you die.Note that if you don\u2019t put assets in the trust while you are living, those assets will go through the probate process. While the executor will have the authority to transfer assets, they\u2019ll have to get court approval. That takes time and costs money. It is best to do it while you are living.A trust helps if you become incapacitated. You may be managing the trust while you are living, but what happens if you become too sick to manage your own affairs or die? If the trust is funded and a successor trustee has been named, the successor trustee will be able to manage your assets and take care of you and\/or your family. If the successor trustee has control of an empty, unfunded trust, and you are still alive but lack capacity, a conservatorship may need to be created by the court to oversee assets.There\u2019s a tax benefit to trusts. For married people, trusts are often created that contain provisions for estate tax savings that defer estate taxes until the death of the second spouse. Income is provided to the surviving spouse and access to the principal during their lifetime. The children are usually the ultimate beneficiaries. However, the trust won\u2019t work if it\u2019s empty.Depending on where you live, a trust may benefit you with regard to state estate taxes. Putting money in the trust takes it out of your taxable estate. You\u2019ll need to work with an estate planning attorney to ensure that the assets are properly structured. For instance, if your assets are owned jointly with your spouse, they will not pass into a trust at your death and won\u2019t be outside of your taxable estate.Move the right assets to the right trust. It\u2019s very important that any assets you transfer to the trust are aligned with your estate plan. Taxable brokerage accounts, bank accounts and real estate are usually transferred into a trust. Some tangible assets may be transferred into the trust, as well as any stocks from a family business or interests in a limited liability company. Your estate planning attorney, financial advisor and insurance broker should be consulted to avoid making expensive mistakes.You\u2019ve worked hard to accumulate assets and protecting them with a trust is a good idea. Just don\u2019t forget the final step of funding the trust.Reference: Forbes (July 13, 2020) “Don\u2019t Overlook Your Trust Funding”For more information on asset preservation and estate planning, please visit my estate planning website."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/www.amorusolaw.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"That Last Step: Trust Funding","item":"https:\/\/www.amorusolaw.com\/blog\/that-last-step-trust-funding-greenwich-ct-white-plains-ny\/#breadcrumbitem"}]}]