Trust Funding 101: The Step Everyone Forgets After Creating Their Trust

A Practical Year-End Reminder to Ensure Your Estate Plan Actually Works

Creating a trust is one of the most powerful tools in estate planning — but signing the trust document is only the beginning. The step that most people forget, overlook, or delay is the most important one: funding the trust.

At The Warnock Law Group, we see it every year. Clients walk away with a beautifully drafted trust, believing their estate plan is complete, only to discover later that their assets were never properly transferred into the trust. The result? Their estate may still need to go through probate, defeating the very purpose of having a trust in the first place.

As the year comes to a close, now is the perfect time for a trust funding check-up to ensure your plan actually works the way you expect it to.

What Does “Funding Your Trust” Actually Mean?

Funding your trust simply means retitling your assets so that they are owned by your trust rather than you individually.

Without this step, your trust is essentially an empty container — valid, but holding nothing. And an empty trust can’t avoid probate, can’t manage your assets if you become incapacitated, and can’t distribute property according to your wishes.

Common assets that need to be reviewed for proper titling include:

• Real estate

• Bank accounts

• Brokerage accounts

• Non-retirement investment accounts

• Business interests

• Vehicles (in certain situations)

• Certificates of deposit

• Life insurance and retirement accounts (via beneficiary designations)

The Consequences of Not Funding Your Trust

Most people create a trust to avoid probate, protect privacy, and ensure smooth management of assets. But if your assets are not properly titled in the name of your trust, your estate may still end up in probate.

Other potential problems include:

• Delays in access to funds by your successor trustee

• Confusion among family members

• Increased legal expenses

• Unintended beneficiaries receiving assets

• Court involvement in managing your affairs during incapacity

In other words: an unfunded trust is a plan that simply doesn’t work.

Year-End Trust Funding Checklist

As you prepare your finances for year-end, take time to confirm that your trust is properly funded. Here’s a simple checklist to guide you:

1️⃣ Real Estate

Verify that your home, rental properties, and land are titled in the name of your trust.If not, a new deed must be prepared and recorded — something our office assists with regularly.

2️⃣ Bank Accounts

Check that checking, savings, and money market accounts are either:

• retitled into the trust, or

• set up to transfer to the trust at your death (TOD/POD designations).

3️⃣ Investment & Brokerage Accounts

Confirm ownership is in the trust’s name.These accounts often require coordination with financial advisors, so this is a great time to loop them in.

4️⃣ Beneficiary Designations

Your trust may need to be listed as a beneficiary on:

• Life insurance policies

• Certain investment accounts

• Annuities

Review the designations to ensure they reflect your current wishes and overall estate plan.

5️⃣ Business Ownership

If you own an LLC, corporation, or partnership interest, it may need to be reassigned to the trust. Many clients forget this step — yet it is critical to avoiding probate.

Why Year-End Is the Perfect Time to Review Trust Funding

The close of the year naturally brings reflection, organization, and financial review. As you tidy up accounts and prepare for tax season, it’s the ideal moment to make sure your trust is fully funded and functioning as intended.

You may also be:

• Opening new accounts

• Selling or purchasing property

• Updating retirement contributions

• Receiving year-end bonuses or distributions

All of these activities can affect your estate plan — and are reminders to confirm assets are properly titled.

We Can Help You Complete (or Double-Check) Your Funding

If you created your trust but aren’t confident it’s fully funded, you’re not alone — and you’re not behind.

Our team at The Warnock Law Group regularly performs trust funding audits and assists clients with transferring assets, updating designations, and ensuring your estate plan functions the way it was designed to.

This year, give yourself and your family the gift of confidence and clarity.

📞 Call (239) 437-1197 or visit www.warnocklawgroup.com to schedule your year-end trust review.Let’s make sure your trust isn’t just created — but complete.