Funding Your Trust | Avoid Probate in Cache County

Funding Your Trust: Why It Matters and What Happens If You Don’t

By Justin J. Wall, Esq.

Trusts & Estates Attorney

Utah and Arizona

Creating a revocable living trust is a smart move for many families—but drafting the document is only half the job. If you don’t fund the trust, it won’t work the way you expect.

As an estate planning attorney, one of the most common problems I see is an unfunded or partially funded trust. People think they’re protected, only for their kids to learn—too late—that their trust was never actually put into effect.

Let’s talk about what trust funding is, why it matters, and what happens when it gets overlooked.

Trusts Help You Avoid Probate—But Only If You Use Them Properly

One of the main reasons people create revocable living trusts is to avoid probate—and for good reason. Probate is the court-supervised legal process used to transfer ownership of assets when someone dies with property still titled in their name. If you leave a will but no trust, your estate still goes through probate because the will alone doesn’t move assets out of your name—it just tells the court where they should go.

A trust avoids probate by doing something different: it takes your name off the title during your lifetime and places ownership in the name of the trust. That way, when you pass away, the trust—not the probate court—controls what happens next. But here's the catch: this only works if the trust actually owns the property in question. If the trust was created but the assets were never transferred into it, the court may still need to step in. In that case, your trust ends up being just a fancy piece of paper. The power of a trust comes from proper funding—transferring title out of your name and into the trust.

What Does It Mean to “Fund” a Trust?

When you create a trust, you’re not just writing instructions—you’re creating a new legal entity. But for that entity to do anything, it has to own something.

“Funding” a trust means retitling your assets into the name of the trust. That could include your home, your bank accounts, investment accounts, business interests, or personal property. If the trust doesn’t legally own the asset, the trust has no authority over it—and when you pass away, that asset may still have to go through probate.

For example, let’s say you create a revocable living trust but never transfer your house into it. Upon your death, your house won’t pass according to the terms of your trust—it will go through the probate process just like any other asset not governed by a beneficiary designation or joint ownership. In other words, your trust doesn’t avoid probate unless it actually owns the property.

What Needs to Go Into the Trust?

Not every asset has to be owned by the trust, but it’s important to know which ones should be.

• Real estate: Your primary residence, rental properties, or land should usually be titled in the name of your trust.

• Non-retirement financial accounts: Bank accounts, brokerage accounts, CDs, and other taxable investments can be retitled to the trust.

• Business interests: Ownership in an LLC or closely held company can be transferred to the trust with proper documentation.

• Tangible personal property: Household goods, collectibles, or equipment can be assigned to the trust with a simple property schedule.

• Beneficiary-controlled assets: Retirement accounts and life insurance policies typically stay in your name but name the trust as a beneficiary, if appropriate.

  
  

Every plan is different. The right mix depends on your goals, the type of trust, and the nature of your estate.

What Happens If You Don’t Fund the Trust?

An unfunded trust is like a safe with the door open and nothing inside. It might look official, but when the time comes, there’s nothing there to protect or manage.

If major assets—like your home or financial accounts—aren’t transferred to the trust, they’ll likely have to go through probate. That means court filings, public records, legal fees, and delays for your loved ones. Worse, if your will doesn’t have a proper “pour-over” clause directing those assets into the trust, the distribution could be completely outside your intended plan.

For families in Cache County and throughout Utah and Arizona, the takeaway is clear: a trust without funding creates a false sense of security.

Make Sure Your Trust Actually Works

The good news is that trust funding isn’t complicated—it just takes intention and follow-through. A good estate planning attorney will not only help you draft your trust, but guide you through the funding process and even provide checklists or assistance in retitling your accounts and property.

If you’ve already created a trust and aren’t sure whether your assets have been properly transferred, don’t wait. A quick review now can prevent a long, expensive headache later.

Need help funding your trust—or starting one the right way? I work with families across Cache County and Northern Utah and virtually across Arizona and Utah to build estate plans that actually work when they’re needed most. Schedule a consultation to get clarity and peace of mind.