• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sexton, Bailey Attorneys, PA

SEXTON BAILEY ATTORNEYS, PA an Arkansas Estate Planning & Trust Information Center

Sexton, Bailey Attorneys, PANorthwest Arkansas Estate Planning Attorneys(479) 443-0062

Client Vault
  • Home
  • Our Firm
    • Our Firm
    • About the American Academy
    • Advantages of Working With Our Firm
    • Attorney and Staff Profiles
    • News & Events
    • Our Reviews
    • Speaker Connection
  • Estate Planning
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Incapacity Planning
    • Legacy Planning
    • Pet Planning
    • SECURE Act
    • Special Needs Planning
    • Trust Administration & Probate
  • Webinars
  • Practice Areas
  • Resources
    • DocuBank
    • Elder Law Reports
    • Estate Planning Resources
      • Estate Planning Articles
      • Estate Planning Checkup
      • Estate Planning Definitions
      • Estate Planning Reports
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
    • FREQUENTLY ASKED QUESTIONS
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • Legacy Wealth Planning
      • Medicaid Planning
      • Pet Planning
      • Trust Administration & Probate
    • Newsletters
    • Trust Administration & Probate Resources
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
  • Reviews
    • Our Reviews
    • Review Us
  • Contact Us
  • Blog
Home / Estate Planning / What is Trust Funding?

What is Trust Funding?

March 2, 2011 by Audra Bailey Wilcox Leave a Comment

Trust based planning is appropriate estate planning for most people.  And, trust funding is necessary to make your plan work and avoid probate.  “Trust funding” is the legal process of transferring title of your assets from your name into the name of your trust.  Your trust is like an empty water bucket that you must fill up with water.  You will fill your trust up with your assets.  This is trust funding.

How do I fund my trust?

Your estate planning attorney will help you by generating the necessary documents to make the transfers.  Your insurance professional, bank, and financial advisor will also be involved.  You just need to sign the authorizations, giving the okay to trust funding. 

Which of my assets are funded into my trust?

Most of your assets are funded into your trust.  Your house, bank account, whole life insurance policies, and investment accounts are all funded.  Some states allow funding of your car.  The beneficiary of your retirement accounts and insurance policies will be changed to the name of your trust.  Even your personal property such as your roller skates and record player are funded into your trust.

What will the title of my assets look like after trust funding?

After funding the assets will include your name, the term “living trust,” and the date you executed your trust.  For example, The Mary L. Smith Living Trust, dated July 5, 1999.

Why should I fund my trust?

Assets in your trust avoid probate and allow your trustees to manage them.  Avoiding probate saves your family time and money and keeps your private financial affairs private.  Moreover, your trustees only have authority over trust assets.  Therefore, it is important to have an up to date financial power of attorney in place to deal with assets that cannot be funded such as a car or retirement account.  Typically, term life insurance policies are not funded because they have no cash value so a power of attorney is needed to manage them. 

If you have questions about trust funding, consult with a qualified estate planning attorney.

  • Author
  • Recent Posts
Audra Bailey Wilcox
Audra Bailey Wilcox
Attorney at Sexton, Bailey Attorneys, PA
Audra Bailey Wilcox
Latest posts by Audra Bailey Wilcox (see all)
  • Bill Nye the Science Guy on Wearing Masks in Public - July 11, 2020
  • Low-Interest Loans: An Estate Planning Technique - June 23, 2020
  • Irrevocable Medicaid Trusts - June 16, 2020

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Sexton, Bailey Attorneys, PA

Is Your Plan Outdated?

Subscribe to Our Blog

Office Address

Fayetteville
2766 Millenium Drive
Fayetteville, AR 72703
Phone: (479) 443-0062

Office Address

Prairie Grove
1100 Division Street, Suite 4
Prairie Grove, AR 72753
Phone: (479) 846-6026

Office Address

Farmington
6 West Main
Farmington, AR 72730
Phone: (479) 267-4441

Office Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 12:00 PM

Map

map for office
  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

footer-logo

© 2021 American Academy of Estate Planning Attorneys, Inc.