What is Funding of a Revocable Living Trust?

What is Funding of a Revocable Living Trust?

Essentially, the funding of a Revocable Living Trust means that assets are re-titled in the name of the trust. So in most instances, a new deed will be drafted by the attorney transferring ownership of the real estate to the trust. Also, non-retirement accounts will be renamed in the name of the trust. It is the proper funding of the trust that allows the assets in the trust to avoid Probate. Assets passing under a Last Will and Testament must be re-titled by the Probate court prior to distribution to beneficiaries of the Will. But assets that have already been re-titled by the Settlor in the name of a Revocable Living Trust can be distributed to the beneficiaries of the Trust without court involvement. Anybody setting up a Revocable Living Trust should make sure the attorney will help with the funding (many do not) as this can be a complicated process.

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