WALTEMATH LAW OFFICE

Funding Revocable Trusts

Many clients come to my office asking that I review their current trust, will or both.  Many have no idea what their will or trust directs or how they work.  Many have revocable living trusts that have never been funded.  A revocable living trust does not avoid probate unless it is funded.  You fund a trust by transferring your property into the trust.  If you own real estate, you place it in your trust by executing a deed from yourself to the trust as the grantee.  If you own bank accounts, you fund the trust with your bank accounts by transferring ownership of the bank accounts to your trust.  It is important to transfer your assets into your trust if you have created a revocable living trust and you want to avoid probate. 

Some assets, like life insurance and retirement plans, should not be placed in your revocable living trust.  It is usually best to name individuals as beneficiaries on life insurance policies and retirement plans.  Naming a beneficiary on these types of assets enables you to transfer the assets to the beneficiaries named without going through probate.  You should seek the advice of an attorney if you are unclear about what your estate plan includes and how it works.  I believe every client of mine should understand what their estate plan is and how it works.  It is my job to ensure that my clients have a plan that works for them and I think if they don’t understand the plan, it probably won’t work for them. 

For further information please call me for a free 30-minute consultation to review our estate planning documents.  WaltemathLawOffice.com, Tamra K. Waltemath, 3843 West 73rd Avenue, Westminster, CO 80030, 303-657-0360.