When setting up a trust, preparing the documents does not finish the process. If the person who sets up the trust fails to properly transfer their assets into it, it can become an underfunded or unfunded. This lack of proper funding can lead to a failure of a person’s estate plan, and also increases the potential for disputes throughout the process of probating the estate. What an Unfunded Trust Is A trust is a legal construction that involves a trustor, a trustee, and a beneficiary. The … [Read more...] about What an Unfunded Trust Is
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The Pitfalls of Unfunded Trusts
Funding the Trust is an essential but often overlooked step towards avoiding a lengthy and expensive probate. Creating a trust instrument, with all of the appropriate instructions, provisos and expressions of intent, is worse than useless if no step is taken to fund the trust by transferring assets into the trust. Even when attorneys draft the trust instrument, they have been known to assume that clients will take this important step without explaining to them the need and … [Read more...] about The Pitfalls of Unfunded Trusts
