We cannot emphasize enough that in order for your Trust to be effective, it needs to be fully funded during your lifetime. Your trust will be considered fully funded when all your assets are transferred into the name of the trust. If a trust is fully funded, then there is nothing left to pass through a will. This means the probate court process can be completely avoided. If assets are left out of your trust, your loved ones may have to deal with the probate process.
Take for example the case of the late Fast and Furious star, Paul Walker. We know that Walker had a will, a trust, and 25 million in assets. The reason why we know so much about his personal affairs is because he did not fully fund his trust.
Instead of putting all of his assets in a trust, Walker relied on his will. His will is a “pour-over” will, which is an instrument that passes assets into a trust upon one’s death. Ultimately, the end result of a pour-over will is the same as if there was a fully funded trust, because the trust still dictates who receives the assets and when. However, if the trust had been fully funded, the public scrutiny of Walker’s personal assets and the cost and hassle of probating the will could have been avoided. Had the trust been fully funded, Walker’s family affairs would have been kept private because there would not have been a will or public record probate filings.
Walker most likely did not have all of his assets titled in the name of his trust because he was so young. His death was heartbreaking, premature, and untimely. Still, a lesson can be learned that it is never too early, and you are never too young, to fully fund your trust.
The Astill Law Office has provided high quality legal services for over 30 years. We specialize in wills, trusts, estate planning, and asset protection. If you have any questions about creating a Trust, Will, or estate planning in general, contact The Astill Law Office at 801-438-8698.