A Revocable Living Trust can be one of the most effective tools for avoiding probate, preserving privacy, and ensuring your assets are managed without court involvement if you become incapacitated. But there’s one critical truth every trust creator needs to understand: a trust only works if it’s funded. Without transferring your assets into the trust, it’s little more than a set of instructions with no authority to act.

What It Means to Fund a Trust

Funding a trust means changing the legal ownership of assets from your personal name into the name of the trust. For example, instead of “John and Jane Smith,” the title might read “John and Jane Smith, Trustees of the Smith Family Trust.” This transfer gives the trust control of the assets so they can be managed and distributed according to your wishes.

Why Funding Your Trust Is Essential

Failing to fund a trust undermines its purpose and forces assets through probate—the lengthy, costly court process you were likely trying to avoid. Probate not only delays distributions but also makes your estate a matter of public record and can spark disputes among heirs.

A fully funded trust delivers benefits an unfunded trust simply cannot:

• Avoiding probate: Assets titled in the trust’s name bypass the court process.
• Privacy: Details of your estate remain confidential.
• Control: Your chosen successor trustee can act without court approval.
• Continuity: Asset management continues seamlessly if you become incapacitated.

Real-Life Consequences of an Unfunded Trust

Consider the story of a widow in The Lakes whose husband had a revocable living trust but never transferred $850,000 in assets into it. The assets remained in his name, requiring full probate. She paid over $10,000 in court fees and endured months of stressful paperwork while grieving—an outcome the trust was supposed to prevent.

This situation wasn’t caused by a flawed document, but by a lack of cooperation, incomplete funding, and poor communication among the husband, financial advisor, and estate planning attorney.

How to Fund a Revocable Living Trust

Funding requires different steps for different asset types. Here’s how it typically works:

Real Estate

Execute and record a new deed transferring ownership to the trust. Working with a real estate or estate planning attorney ensures the transfer complies with Nevada law and doesn’t create unintended tax issues.

Bank and Investment Accounts

Contact your bank or financial institution to retitle accounts in the trust’s name. You may need to provide trust documentation and complete specific forms.

Tangible Personal Property

Sign a written assignment transferring valuable items—such as artwork, jewelry, or collectibles—into the trust.

Life Insurance and Retirement Accounts

You may not retitle certain retirement accounts for tax reasons, but you can name the trust as a beneficiary. This directs the proceeds to the trust upon your passing.

Business Interests

Transfer ownership shares or interests into the trust by updating corporate records, stock certificates, or operating agreements.

Common Funding Mistakes to Avoid

Leaving Assets Out of the Trust

If assets aren’t transferred, they remain subject to probate.

Ignoring Beneficiary Designations

Conflicting beneficiary designations can cause disputes or bypass the trust entirely.

Failing to Involve Both Spouses

Both spouses should be active participants in funding and reviewing the trust to prevent oversights.

Not Reviewing the Trust Regularly

Acquiring new assets without updating the trust can leave them unprotected.

Best Practices for Maintaining a Funded Trust

Work With a Team

An estate planning attorney in The Lakes can help ensure assets are transferred correctly and remain in alignment with your goals.

Document Everything

Request and keep proof of ownership changes, updated titles, and beneficiary forms.

Review Annually

Life changes—new properties, accounts, or business interests—require trust updates.

Ensuring Your Trust Works

A revocable trust is a living document that requires ongoing attention. Properly funding your trust provides security for your loved ones, avoids unnecessary legal complications and ensures that your legacy is preserved. Request a consultation with Stone, Bybee & Associates to learn how our estate planning team works diligently with our clients to ensure their trusts are not only created properly based on your family’s unique situation, but also funded so that they work when needed.

Key Takeaways

• A revocable living trust is only effective if it’s funded with your assets.
• Funding involves retitling property, accounts, and other assets into the trust’s name.
• Failing to fund leaves assets vulnerable to probate, public exposure, and delays.
• Both spouses should be actively involved to ensure nothing is overlooked.
• Regular reviews with your estate planning team help keep your trust complete and effective.

References: American College of Trust and Estate Counsel (ACTEC) (Aug. 31, 2023) Funding Your Revocable Trust and Other Critical Steps and Cape Gazette (July 2, 2025) Beautiful Documents, Broken Plans: When Estate Planning Falls Short