Trust Funding Attorney in Los Angeles
Why fund a trust?
The taking of assets which are titled into the trustmaker's name and then retitling them into the title of the trustmaker's revocable living trust is called funding a trust. It is also when assets that require a beneficiary designation and naming it into the trustmaker's revocable living trust as either the primary or secondary beneficiary. The primary purpose of funding a trust is to make sure that the property that belongs to the trustmaker is managed under the terms of the trust agreement. This allows the disability trustee to take hold of the accounts that are held under the trust in case the trustmaker becomes incapacitated. It also ensures that the death trustee can easily manage and have access to the accounts to transfer funds that are held in the name of the trustmaker.
Purpose of Trust Funding
There are many reasons that a trust can and should be funded. It allows the assets that are held outside of a revocable living trust to be managed by the trustee. The trustee will display no power over the property that has not been retitled into the name of the trust. Also, the trustmaker's property that was not already retitled into the name of the trustmaker's revocable living trust will have to take the route of probate after the trustmaker's death. Once the trustmaker's death, the property that is held outside of the trust will not be transferred to the beneficiaries that the trustmaker intended. Instead, they will be distributed based on the right of survivorship. It is important to obtain a solid understanding of trust funding and to know how it can benefit your trust.
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