What does funding my trust mean?

Funding a trust refers to the process of transferring assets into the trust’s ownership. For the trust to serve its intended purpose, it needs to hold assets. This involves retitling assets such as real estate, bank accounts, investments, and other properties into the name of the trust; provided however, it is important to note that each person will have different funding instructions depending on the circumstances. Your assets are not locked up when you fund a trust, and you may continue to buy and sell assets during your lifetime. The goal is to ensure that these assets are governed by the terms of the trust, allowing for seamless management and distribution according to your wishes without going through the probate process. Properly funding your trust is a crucial step in the estate planning process, as it helps maximize the benefits of a trust by avoiding probate and facilitating a smoother transition of assets to beneficiaries. Working closely with an attorney is advisable to navigate the intricacies of trust funding and ensure your estate plan aligns with your specific goals.