When setting up a trust, preparing the documents does not finish the process. If the person who sets up the trust fails to properly transfer their assets into it, it can become an underfunded or unfunded. This lack of proper funding can lead to a failure of a person’s estate plan, and also increases the potential for disputes throughout the process of probating the estate. What is an Unfunded Trust? A trust is a legal document that involves a trustor, a trustee, and a beneficiary. The trustor creates the trust and transfers assets into it. The trustee manages the assets in the trust and they do so with the best interests of the beneficiary in mind. The drafting of the trust instrument is a key part of this process. That document will outline many of the legal rights and responsibilities of the trustee and the beneficiary, and it can provide instructions for the trustee to follow. Many people think that once they sign the trust document, the process is complete and the trustee will
http://www.norcalplanners.com/blog/estate-planning/making-living-trust-performs-intended/
Making Sure Your Living Trust Performs As Intended
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