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Florida Trusts and Failing to Fund them: It's like having Fireworks and no way to light them

By David M. Goldman

A Florida Revocable Trust which has never been funded does not exist and what ever work has been put into the creation of the trust is often waisted. With some assets the results of failure to fund the trust can be devastating. In other situations, one's will can do many of the same things that they trust would have done. In those cases the effect of an unfunded trust may only be a delay in time, waisted money, increased probate expenses, and 6-12 months of court administration.

Since funding a trust is so easy, why do so many individuals fail to fund their trust? Many individuals and families do not fund their trust, because they do not understand the importance of funding to the process. This is generally more of a problem with the person who created the trust in helping the individual to understand how a trust works and what is necessary to complete the process. It is surprising, how many trusts we see and review that were created years ago that have never been funded. Sometimes, trusts have been created and modified several times and still never been funded.

So how do you fund the trust? 1) you can assign assets to the trust; 2) change your bank and stock accounts to trust; 3) create and execute deeds for property that you want to be owned by the trust.

The biggest problem with failing to fund the trust does not occur at death, but incapacity. All of your planning is worthless. Not only are there no assets for your "manager" to use for your benefit, but you may need to have a court ordered guardianship to provide for you. The court ordered guardian, may not be who you would have chosen.

For a complimentary review of your Florida Revocable Trust and to make sure it has been funded to deal with your objectives, contact a Florida Estate Planning Lawyer or Jacksonville Estate Planning Lawyer.

Full post as published by Florida Estate Planning Lawyer Blog on July 02, 2010 (boomark / email).