Do I need a lawyer to fund my trust?
Trust funding is the process of transferring ownership of your assets from your individual name(s) to the name of your trust. This is absolutely essential for your trust to function as intended. If assets are not properly titled in the name of the trust, they may be subject to probate – the very thing you were trying to avoid by creating a trust in the first place.
Think of it this way:
Without Funding: Your assets are essentially "outside" of your trust, still subject to probate if your estate exceeds a certain low threshold amount in California.
With Funding: Your assets are "inside" the trust, managed according to your instructions by your trustee (or successor trustee) without the need for probate.
Why We Encourage Clients to Handle the Bulk of Funding Themselves (And How We Support You):
We understand that trust funding can seem daunting, but in most cases, it's a process that our clients can easily manage themselves. Here's why we believe this is the best approach:
Cost Savings: Having us handle every single aspect of trust funding can be expensive. Our hourly rates can quickly add up when dealing with routine paperwork and phone calls. On average, each account and asset will cost about $250 - $750 to add to your trust. By taking the lead on funding, you significantly reduce legal fees. Flat fee retainer agreements and any legal insurance plans do not cover any fees with funding assistance. This is due to the fact that it is impossible to estimate how much time it will take for financial institutions to return our calls.
Familiarity with Your Assets: You know your assets better than anyone else. You have the account numbers, contact information, and the most up-to-date statements. This makes the process much more efficient. You also have the best understanding of your personal property and its value. If you need legal assistance with that — the collection, review, and analysis of all such information and documents will cost thousands of dollars in additional legal fees.
Control and Flexibility: You can work at your own pace and on your own schedule. There's no need to coordinate appointments or wait for us to complete each step.
It's Often Just Administrative Work: Much of trust funding involves filling out forms, contacting institutions, and following their specific procedures. It's much more administrative than legal in nature.
We Provide Clear Guidance: We don't just hand you a trust document and wish you luck. We provide detailed instructions to guide you through the process when the time comes for funding.
Conclusion:
Trust funding is a vital part of the estate planning process. By understanding the process and taking an active role in funding your trust, you can ensure that your assets are protected and your wishes are carried out.