You may have spent a great deal of time setting up your estate plans to provide for your family when you die. But if you forget to fund your trusts, all your hard work may be in vain.
It is a very common mistake that many people in Florida make. When you fail to properly fund or set up trusts, all assets and proceeds meant for your family must pass directly through probate first.
This may not seem like a big deal now, but when you die, instead of your children and beneficiaries receiving their inheritances right away, they may end up waiting in line. There is also the possibility of them not receiving everything you willed to them. Take some time to review the following information about funding trusts.
Probate gains control of your assets
All assets, with the exception of life insurance and certain financial accounts that do not have beneficiaries or have joint ownership become probated assets. The instructions in your will determine everything that happens regarding the distribution of your assets. If you do not leave a will, then the courts will decide who gets what.
A possible solution to prevent issues
If you are not sure what assets you want to include in your trusts yet or you want to fund your trusts when a specific life event happens, include a provision in your estate plans.
A pour-over will allows you to have your assets pass to your trusts once you die so your loved ones do not have to rely on probate court to decide how to disperse them. This allows your loved ones to have access to their inheritances right away; to enjoy the protections that the trusts provide; and to avoid fees, taxes and other issues that could interfere with the distribution of your assets.
There are many issues and mistakes that can void your estate plans and lead to the probate court overruling your final wishes. To prevent issues and to protect your legacy, you might want to speak with an attorney for assistance.