How to Set Up Your Trustee for Success

At Legacy Law Centers, we advise clients to include a revocable living trust in their estate plans to make sure their finances are properly managed if they are ever incapacitated. We know how important it is to know your family and other loved ones are financially secure in your absence, which is why we want to explain what you need to do to set up a trust fund.

Funding the Trust

Trust funding involves transferring ownership of your accounts and property during your lifetime. You can also designate the trust as a beneficiary of an account or piece of property. This will allow the trust to receive ownership when you pass away.

A properly funded trust also provides the added benefit of avoiding the probate process, which will make administering the trust much easier. Additionally, the successor trustee won’t have to jump through as┬ámany hoops to access your accounts or property if you are incapacitated and they need to quickly manage your affairs.

Make an Inventory for the Trustee

Your successor trustee will be required to provide your named beneficiaries with a list of all the accounts and property in the trust. This is why it is important to keep the most up-to-date information regarding the funding of the trust. By leaving a comprehensive inventory for the trustee, they can save valuable time in the early stages of administration.

Knowing Your Wishes Will Be Respected

If an account or piece of property is not owned by the trust, then the instructions in the trust agreement won’t make a difference. Items not controlled by a beneficiary designation or joint ownership must go through probate. If this happens, the property will be funded into the trust through a pour-over will or the court might rely on state statute to determine a default method for dividing your money and property among specified heirs.

Our compassionate lawyers know that you care deeply for your family and other loved ones in your life. If you have more questions about administering or establishing trusts, please don’t hesitate to reach out to us for assistance. Call (571) 200-5559 today to schedule your consultation.

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