Having a living trust can be a convenient, cost-effective way to transfer assets to an heir after you die. Merely having a living trust is insufficient, however, if that trust is not properly funded. In cases involving real estate assets, this means ensuring the property is titled to the trust. Find out more about funding a trust via Max Alavi APC, OC Trusts Lawyer.
The Importance of Properly Funding Your Trust
A living trust can be an effective way to transfer assets to your heirs upon your death. However, it’s important to remember that creating trust is merely the first step. It’s equally essential to ensure that the trust is fully funded. In other words, it’s important to transfer the title to your assets and property from yourself to your trust.
This is an especially important concern when using a living trust for real estate. One of the most common errors people make is not titling newly purchased property in the name of their trust. This error can frustrate the entire reason for creating the trust in the first place.
Titling Assets in the Name of Your Trust
Keep in mind that a trust can only control those assets that are titled in the name of the trust. So, if you fail to title an asset or piece of property in the name of the trust, then that asset will be treated as though you had no trust at all. This will likely mean that, upon your death, your heirs must go through the costly, time-consuming probate process in order to claim their inheritance, something that a properly funded living trust could help you avoid.
Again, these concerns are especially important when considering a living trust for real estate. This is because the deeds to your real estate must not only be titled in the name of the trust, they also must be accurately reported to the office of the county recorder.
Living Trusts and Pour Over Wills
It’s worth noting that a pour over will may be used to transfer assets into your trust after you have passed away. This is far from an ideal solution, however, as any will must be approved by the probate court before it can go into effect. This means your heirs may still incur significant court costs or experience major delays before they may claim their assets.
The bottom line? There is simply no substitute for ensuring that your assets are properly titled in a fully funded trust.
Talk with a Living Trust Attorney
Living trusts can provide a smooth and cost-effective transfer of assets to your intended heirs. To ensure the proper setup and funding of your living trust, make sure you speak with an experienced living trust attorney.
Max Alavi APC, OC Trusts Lawyer, is an experienced living trusts attorney with a proven track record of success, and a broad portfolio of five-star client reviews. To discuss using a living trust for real estate, contact Max Alavi APC, OC Trusts Lawyer at your convenience.