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Tag: Wills and Trusts Washington

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Funding a Trust

Irish-handsAfter creating a trust, you need to fund it. That does not have to be a difficult process.

One of the many problems of “discount” trusts, either from a trust service or an online document service, is that they never get around to funding the trust. When the settlor passes away, the trust does not work as intended, because there are no assets in it to be distributed according to the terms of the trust. The time and money spent creating the trust were all wasted.

Trusts must be funded. That does not mean just putting money in them. It means transferring the title of property to the trust, as the Times Herald-Record discusses in “How to transfer assets to a trust.”

Transferring title of property differs for different types of assets. However, it does not need to be difficult for any asset type. It is mostly a matter of filling out the right paperwork and getting that paperwork to the proper authority. For example, when you purchased your home, the title was transferred to you and registered with your local Register of Deeds. You just need to do the same thing for the trust this time.

There is someone who can help you make sure that your trust is properly funded. That is an estate planning attorney who knows how to transfer title in different asset types. This is one reason why it is better to hire an attorney to create a trust, instead of using a cheaper service. It helps make sure that your trust gets funded and will be effective when it is needed.

Reference: Times Herald-Record (May 31, 2018) “How to transfer assets to a trust.” 

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Use a Trust to Avoid Disputes

If you know that your family is likely to fight over your estate, you can limit the fight greatly, by using a trust instead of a will. Couple on sofa angry with each other

Many family fights over estates are predictable. People know when their family members do not get along and are likely to fight over their inheritances. They know that “unequal” inheritances are more likely to trigger trouble, too.

When it comes to estate planning, it is important to understand that those fights quite often result in protracted court cases over the estate. This is especially true, if the main instrument used to distribute the estate is a will that has to go through probate by its very legal nature. Some of this mayhem may be avoided by using a trust instead as the Times Herald-Record discusses in “Trusts avoid inheritance disputes among family members.”

Since trusts do not go through probate, there is no open probate case for family members to easily file a claim. That in and of itself makes a trust much less likely to lead to litigation. It is also easier to use the trust document itself to create language making family fights less likely. Even if there are fights, an independent trustee can often referee those fights and thus avoid any litigation.

It is nearly impossible to completely guarantee that no family fight will ever occur over an estate. An estate planning attorney can help make those fights much less likely, by creating a good trust.

Reference: Times Herald-Record (April 5, 2018) “Trusts avoid inheritance disputes among family members.”