Your Trust Isn’t Finished Until It’s Funded: The Step Most People Miss

Creating a revocable living trust is a powerful step in protecting your family, avoiding probate, and planning for incapacity. But here’s the uncomfortable truth:

A trust that isn’t funded doesn’t work.

Many people sign beautiful, professionally drafted documents… then unknowingly leave their assets outside the trust — defeating much of the purpose. Funding your trust is where the real protection happens.

🧩 What Does “Funding a Trust” Mean?

Funding simply means transferring ownership of your assets into the name of your trust.

Instead of:

Jane Doe → Owner

It becomes:

Jane Doe, Trustee of the Jane Doe Living Trust → Owner

Your trust can only control what it actually owns.

🏠 Real Estate Is Often the Biggest Missed Asset

For Florida families, your home is frequently your largest asset — and the one most people assume is automatically covered.

It isn’t. Your property must be retitled (typically through a deed) into the trust. Otherwise, it may still go through probate.

Florida homestead property adds additional complexity. The Florida Constitution provides strong creditor protection but also imposes rules on how homestead property can be transferred and devised. Proper drafting and funding are essential to preserve protections while achieving your planning goals.

💰 Financial Accounts Need Attention Too

Bank and investment accounts must be addressed individually. Depending on your goals, accounts may be:

• Retitled into the trust
• Left outside the trust but coordinated with beneficiary designations
• Used to provide liquidity during administration

There is no one-size-fits-all approach.

🚗 What About Cars and Personal Property?

Some assets may remain outside the trust intentionally. In Florida, vehicles are often left in an individual’s name because the state offers simplified transfer procedures at death. Tangible personal property can sometimes be handled through a separate assignment document.

The key is intentional coordination — not accidental omission.

⚠️ What Happens If You Don’t Fund the Trust?

If assets remain outside the trust, your family may still face:

• Probate court proceedings
• Additional legal costs
• Administrative delays
• Public disclosure of estate details
• Complications during incapacity

In other words, the problems the trust was designed to avoid.

🧠 Funding Also Protects You During Incapacity

A properly funded trust isn’t just a death planning tool — it’s an incapacity planning tool. If you become unable to manage your affairs, your successor trustee can step in to manage trust-owned assets without court involvement.

Assets left outside the trust may require a durable power of attorney to manage — or, if none exists or is insufficient, a court-supervised guardianship.

🏆 Think of the Trust as a Safe

Signing the trust is like installing a safe in your home. Funding the trust is putting your valuables inside it. An empty safe doesn’t protect anything.

✔️ Signs Your Trust May Not Be Fully Funded

You may need a review if:

• Your home is still titled in your individual name
• Accounts were never retitled
• You opened new accounts after creating the trust
• You moved to Florida after establishing your trust
• You aren’t sure what assets are included

If you don’t know, it’s worth checking.

A well-funded trust can provide privacy, efficiency, and peace of mind for your family. But only if it’s actually used. Ready to plan? Book a call today.