Funding Your Trust: Why It Matters and How to Do It Right
Creating a trust is a major step in protecting your estate, but the work doesn’t stop once the documents are signed. The real power of a trust comes from what you put into it. Without proper funding, a trust is just an empty shell — all structure, no substance.
At Fletcher Estate Planning, we see it often. People spend time and money crafting thoughtful estate plans, only to miss the crucial step of actually transferring their assets. That oversight can undo everything you hoped to accomplish.
Let’s walk through what it means to fund a trust, where people tend to go wrong, and how to avoid those mistakes.
What Does “Funding a Trust” Actually Mean?
Funding means moving assets into the trust. It’s the process of changing titles, ownership, or beneficiary designations so that the trust becomes the legal holder of those assets.
Think real estate, bank accounts, brokerage portfolios, business interests, and personal property. If it has value, it likely needs to be addressed.
Without this step, the assets you intended to protect may still wind up in probate court. Which is exactly what the trust was supposed to help avoid.
Common Mistakes People Make
1. Forgetting to Transfer Assets
A signed trust with no assets is like a safe with no valuables inside. You have to take action to move things into the trust. That means retitling property, updating account records, and following through. It’s not automatic.
2. Ignoring Beneficiary Designations
Accounts like IRAs, 401(k)s, and life insurance often bypass the trust completely if they have named beneficiaries. If those beneficiaries are outdated — or if you meant the trust to receive the funds — then it’s time to review and update.
3. Skipping the Deed for Real Estate
Real estate is often the biggest asset in an estate. It does not transfer to the trust unless a new deed is recorded. Leaving it out creates a gap that can trigger probate proceedings.
4. Only Transferring the Obvious
People often focus on the big-ticket items and overlook others. Business interests, intellectual property, stocks, bonds, vehicles — these all need to be addressed. If it’s part of your financial life, assume it needs a home in the trust.
5. Failing to Fund New Assets
Bought a new property? Opened a new investment account? Those need to be transferred too. A trust is a living structure. It only works if you continue feeding it.
6. Not Keeping Records
If no one knows what was moved into the trust, confusion is inevitable. Maintain a list of everything you’ve transferred. It will help your successor trustee, and it will give you peace of mind.
7. Treating the Trust Like a One-and-Done
Your life changes. So should your trust. Marriage, divorce, new children, a death in the family — these are all reasons to revisit your plan. An unfunded or partially funded trust is just a missed opportunity.
How to Fund Your Trust Properly
Make a Full Inventory
Start with a comprehensive list of what you own. Real estate. Cash. Stocks. Jewelry. Vehicles. Business shares. Art. Retirement accounts. Leave nothing out.
Retitle Ownership Where Needed
For real estate, that means recording a new deed. For bank accounts and investment portfolios, that means changing account ownership. Vehicles often require new titles. Each asset type has a specific method.
Review and Update Beneficiary Designations
Decide whether it makes more sense to name the trust or individuals as beneficiaries. The answer will depend on the asset and your goals.
Work with an Attorney
The process isn’t always intuitive. And the consequences of getting it wrong can be significant. An estate planning attorney can help you make sure your trust is fully and properly funded — and stays that way.
Check In Regularly
Once a year is a good benchmark. Or anytime something big happens in your life or finances. It doesn’t need to be complicated. But it does need to be consistent.
Final Thought
A trust is not just a document. It’s a vehicle. But it can’t carry anything unless you place your assets inside it.
Funding your trust gives it life. It turns a legal idea into a functioning tool that protects your family, respects your wishes, and helps avoid unnecessary court involvement.
At Fletcher Estate Planning, we’re here to guide you through every step. If you’ve created a trust but haven’t funded it — or if you’re not sure what still needs to be done — reach out. Let’s make sure your plan works when it matters most.