The concept of a trust becoming “self-executing” upon death isn’t precisely accurate, but the goal—a smooth, automatic transfer of assets—is achievable with proper trust creation and funding. A trust doesn’t operate independently; it requires a trustee to manage the assets according to the trust’s terms. However, a *revocable living trust*, when properly drafted and *funded*, can avoid probate, creating the *appearance* of a self-executing transfer. Approximately 60% of Americans don’t have a will or trust, leaving asset distribution to state law, which can be a lengthy and costly process.
What happens if my trust isn’t properly funded?
Proper funding is the key to a trust functioning as intended after death. Funding a trust means transferring ownership of your assets—real estate, bank accounts, investments—into the name of the trust. If assets aren’t titled in the trust’s name, they will likely have to go through probate, negating the primary benefit of the trust. I recall assisting a client, Mr. Henderson, who meticulously drafted a trust but never transferred his brokerage account. After his passing, his family faced considerable delays and legal fees as that account went through probate, costing them nearly 5% of the account’s value in expenses. This highlights that a beautiful document is useless without diligent execution.
What role does a successor trustee play in this process?
The successor trustee is crucial. This individual, named in the trust document, steps in to manage the trust assets upon the original trustee’s death or incapacitation. They are legally obligated to act in the best interests of the beneficiaries and follow the instructions laid out in the trust. “A well-chosen successor trustee is the engine that keeps the trust running smoothly,” as I often tell my clients. They handle everything from paying bills and taxes to distributing assets according to the trust’s terms—all without court intervention, provided the trust is validly funded and the successor trustee understands their duties.
Is a trust always better than a will regarding avoiding probate?
Not necessarily, but for many, it is. While a will dictates how your assets are distributed, it must go through probate, a court-supervised process that can take months or even years and involve significant legal fees. Trusts, particularly revocable living trusts, bypass probate entirely. However, some assets, like life insurance policies and retirement accounts with designated beneficiaries, pass directly to those beneficiaries, regardless of a will or trust. I once consulted a couple, the Millers, who had a modest estate but were deeply concerned about the potential burden on their children. We established a trust that held their home and investment accounts. After their passing, the transition was seamless—their children received the assets quickly and without the stress of probate.
What if I change my mind about the trust after it’s established?
That’s the beauty of a revocable living trust. As the grantor (the person creating the trust), you retain control and can amend or even revoke the trust at any time during your life, as long as you are competent. This flexibility is especially important as your circumstances change—births, deaths, marriages, divorces, or significant financial shifts. I remember a client, Ms. Evans, who initially set up a trust with very specific instructions for her children. Years later, one child experienced financial hardship. She was able to easily amend the trust to provide additional support, demonstrating the benefit of retaining control over your estate planning. Proper estate planning isn’t about predicting the future, it’s about having the tools to adapt to whatever it brings.
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About Steve Bliss at Escondido Probate Law:
Escondido Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
- living trust
- revocable living trust
- irrevocable trust
- family trust
- wills and trusts
- wills
- estate planning
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/oKQi5hQwZ26gkzpe9
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Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “Can I use estate planning to protect assets from creditors?” Or “What if the estate doesn’t have enough money to pay all the debts?” or “What is a pour-over will and how does it work with a trust? and even: “How long does bankruptcy stay on my credit report?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.