
<p><span><a href="https://simplytrust.io/3111/10-ridiculous-grounds-for-getting-a-trust/">Getting a trust</a> isn’t a &#8220;set it and forget it&#8221; situation. Life happens, and when it does, your trust should reflect those changes. Here are 30 reasons to update your trust. Some are strategic and some are situational, but all of them are important!</span></p>



<h2 class="wp-block-heading" id="h-major-life-events"><strong>Major Life Events</strong></h2>



<h4 class="wp-block-heading" id="h-1-you-got-married"><strong>1. You Got Married</strong></h4>



<p><span>Marriage changes everything—your finances, your beneficiaries, and even your legal obligations. If your trust doesn’t include your spouse, it might create unnecessary complications.</span></p>



<h4 class="wp-block-heading" id="h-2-you-got-divorced"><strong>2. You Got Divorced</strong></h4>



<p><span>On the flip side, divorce means you probably don’t want your ex-spouse to have control over your assets. Unless you update your trust, they could still be listed as a beneficiary or trustee.</span></p>



<h4 class="wp-block-heading" id="h-3-you-had-a-baby"><strong>3. You Had a Baby</strong></h4>



<p><span>A new addition to the family means you’ll want to include them in your trust. This ensures they receive financial support and protection in the future.</span></p>



<h4 class="wp-block-heading" id="h-4-you-adopted-a-child"><strong>4. You Adopted a Child</strong></h4>



<p><span>Adoption is just as significant as a birth when it comes to estate planning. Updating your trust ensures inclusion of your adopted child.</span></p>



<h4 class="wp-block-heading" id="h-5-a-loved-one-passed-away"><strong>5. A Loved One Passed Away</strong></h4>



<p><span>If a beneficiary or trustee has passed away, your trust should reflect who will take their place.</span></p>



<h4 class="wp-block-heading" id="h-6-you-became-a-grandparent"><strong>6. You Became a Grandparent</strong></h4>



<p><span>If you want to include your grandchildren in your estate plan, updating your trust is essential.</span></p>



<h4 class="wp-block-heading" id="h-7-you-became-a-legal-guardian"><strong>7. You Became a Legal Guardian</strong></h4>



<p><span>If you’ve taken on the responsibility of being a legal guardian—whether for a minor, an elderly parent, or a dependent adult—your trust should reflect this new role. Updating your trust can ensure financial support and proper care instructions for the person under your guardianship.</span></p>



<h4 class="wp-block-heading" id="h-8-a-trustee-or-executor-became-incapacitated"><strong>8. A Trustee or Executor Became Incapacitated</strong></h4>



<p><span>If the person managing your trust is no longer able to serve, you need to name a replacement.</span></p>



<h4 class="wp-block-heading" id="h-9-a-named-guardian-is-no-longer-suitable"><strong>9. A Named Guardian Is No Longer Suitable</strong></h4>



<p><span>If you’ve named a guardian for minor children but your circumstances have changed, updating your trust ensures the right person is in place.</span></p>



<h4 class="wp-block-heading" id="h-10-your-health-situation-changed"><strong>10. Your Health Situation Changed</strong></h4>



<p><span>If you or a family member experience a major health change, updating your trust can help provide financial stability and care planning.</span></p>



<h2 class="wp-block-heading" id="h-financial-and-asset-changes"><strong>Financial and Asset Changes</strong></h2>



<h4 class="wp-block-heading" id="h-11-you-bought-a-house"><strong>11. You Bought a House</strong></h4>



<p><span>Your new property should go in your trust to avoid probate and ensure it transfers smoothly.</span></p>



<h4 class="wp-block-heading" id="h-12-you-sold-a-house"><strong>12. You Sold a House</strong></h4>



<p><span>If a property listed in your trust is no longer yours, updating your trust keeps it accurate and relevant.</span></p>



<h4 class="wp-block-heading" id="h-13-you-opened-new-financial-accounts"><strong>13. You Opened New Financial Accounts</strong></h4>



<p><span>Bank accounts, investment accounts, and retirement plans should be properly titled in your trust.</span></p>



<h4 class="wp-block-heading" id="h-14-you-inherited-money-or-property"><strong>14. You Inherited Money or Property</strong></h4>



<p><span>A significant inheritance can change how you want to distribute assets to beneficiaries.</span></p>



<h4 class="wp-block-heading" id="h-15-you-started-a-business"><strong>15. You Started a Business</strong></h4>



<p><span>If you own a business, your trust should include succession planning to ensure a smooth transition.</span></p>



<h4 class="wp-block-heading" id="h-16-you-sold-a-business"><strong>16. You Sold a Business</strong></h4>



<p><span>If your business was in your trust but is no longer part of your assets, you’ll want to revise your trust accordingly.</span></p>



<h4 class="wp-block-heading" id="h-17-your-financial-status-changed-significantly"><strong>17. Your Financial Status Changed Significantly</strong></h4>



<p><span>Whether you’ve gained wealth or faced financial setbacks, your trust should be adjusted to reflect new realities.</span></p>



<h4 class="wp-block-heading" id="h-18-you-want-to-change-asset-distribution"><strong>18. You Want to Change Asset Distribution</strong></h4>



<p><span>If your priorities shift—such as providing more for one child due to medical needs—you can update your trust accordingly.</span></p>



<h2 class="wp-block-heading" id="h-family-and-relationship-changes"><strong>Family and Relationship Changes</strong></h2>



<h4 class="wp-block-heading" id="h-19-your-beneficiaries-have-become-financially-independent"><strong>19. Your Beneficiaries Have Become Financially Independent</strong></h4>



<p><span>If your children are now financially stable, you may want to distribute your assets differently.</span></p>



<h4 class="wp-block-heading" id="h-20-you-have-a-special-needs-family-member"><strong>20. You Have a Special Needs Family Member</strong></h4>



<p><span>A special needs trust ensures continued financial support while protecting eligibility for benefits.</span></p>



<h4 class="wp-block-heading" id="h-21-a-beneficiary-is-having-financial-or-legal-trouble"><strong>21. A Beneficiary Is Having Financial or Legal Trouble</strong></h4>



<p><span>If a beneficiary struggles with debt, bankruptcy, or lawsuits, updating your trust can protect assets from creditors.</span></p>



<h4 class="wp-block-heading" id="h-22-your-relationship-with-a-beneficiary-changed"><strong>22. Your Relationship with a Beneficiary Changed</strong></h4>



<p><span>If you’ve grown distant or closer to a beneficiary, you may want to adjust their inheritance.</span></p>



<h4 class="wp-block-heading" id="h-23-you-want-to-include-or-exclude-a-charity"><strong>23. You Want to Include or Exclude a Charity</strong></h4>



<p><span>If philanthropy is important to you, updating your trust to include charitable donations is a great way to leave a legacy.</span></p>



<h2 class="wp-block-heading" id="h-legal-and-strategic-considerations"><strong>Legal and Strategic Considerations</strong></h2>



<h4 class="wp-block-heading" id="h-24-you-want-to-minimize-estate-taxes"><strong>24. You Want to Minimize Estate Taxes</strong></h4>



<p><span>Estate tax laws change frequently. Updating your trust can help maximize tax benefits for your heirs.</span></p>



<h4 class="wp-block-heading" id="h-25-you-need-to-update-successor-trustees"><strong>25. You Need to Update Successor Trustees</strong></h4>



<p><span>If your trustee is no longer able or willing to serve, naming a new one ensures your assets are in good hands.</span></p>



<h4 class="wp-block-heading" id="h-26-you-want-to-add-or-remove-conditions-for-inheritance"><strong>26. You Want to Add or Remove Conditions for Inheritance</strong></h4>



<p><span>You might want to set age requirements, distribute assets over time, or include incentives for certain achievements.</span></p>



<h4 class="wp-block-heading" id="h-27-your-trust-isn-t-fully-funded"><strong>27. Your Trust Isn’t Fully Funded</strong></h4>



<p><span>If assets aren’t properly titled in your trust, they may still go through probate. Updating and funding your trust ensures full protection.</span></p>



<h4 class="wp-block-heading" id="h-28-you-want-to-ensure-privacy"><strong>28. You Want to Ensure Privacy</strong></h4>



<p><span>Unlike wills, trusts keep your estate private. If you’re concerned about privacy, reviewing and updating your trust can help.</span></p>



<h4 class="wp-block-heading" id="h-29-laws-have-changed"><strong>29. Laws Have Changed</strong></h4>



<p><span>Tax laws and estate laws change over time. Periodic updates keep your trust in compliance and optimized for current laws.</span></p>



<h4 class="wp-block-heading" id="h-30-it-s-been-more-than-three-years-since-you-last-updated-it"><strong>30. It’s Been More Than Three Years Since You Last Updated It</strong></h4>



<p><span>Even if nothing major has changed, reviewing your trust every few years ensures it’s still aligned with your goals and circumstances.</span></p>



<h2 class="wp-block-heading" id="h-update-your-trust-and-update-it-again"><strong>Update Your Trust, and Update It Again</strong></h2>



<p><span>Life is always changing, and your trust should change with it. Regular updates ensure your estate plan reflects your wishes, protects your loved ones, and makes things as smooth as possible for everyone involved. If any of these reasons apply to you, update your trust. And update it again. And again.</span></p>


30 Reasons to Update Your Trust


<p><span>A key player in the estate planning process is the </span><strong>trustee</strong><span>—an individual or institution responsible for managing a trust and carrying out its terms. But what exactly does this role entail, and why is it so crucial? Here are some of the responsibilities, challenges, and real-world scenarios that highlight the indispensable role of trustees.</span></p>



<h2 class="wp-block-heading" id="h-understanding-the-role-of-trustees"><strong>Understanding the Role of Trustees</strong></h2>



<p><span>A trustee is a person or entity legally responsible for managing the assets held in a trust. Their duty is to act in the best interests of the beneficiaries, ensuring the trust operates according to the grantor’s intentions. Trustees can be individuals, such as family members or close friends, or institutions like banks and trust companies.</span></p>



<h4 class="wp-block-heading" id="h-core-responsibilities-of-a-trustee"><span>Core Responsibilities of a Trustee:</span></h4>



<ul class="wp-block-list">
<li><strong>Managing Trust Assets</strong><span> – Trustees oversee and manage financial assets, real estate, or business interests within the trust.</span></li>



<li><strong>Fiduciary Duty</strong><span> – They must always act in the best interest of the beneficiaries, making ethical and prudent decisions.</span></li>



<li><strong>Distributing Assets</strong><span> – Trustees distribute trust funds according to the terms outlined in the trust document.</span></li>



<li><strong>Record-Keeping and Reporting</strong><span> – Detailed documentation of transactions and annual reports may be required, especially for irrevocable trusts.</span></li>



<li><strong>Legal and Tax Compliance</strong><span> – Trustees must ensure compliance with applicable laws and proper tax filing.</span></li>



<li><strong>Conflict Resolution</strong><span> – They often mediate disputes between beneficiaries or between beneficiaries and the trust itself.</span></li>
</ul>



<h2 class="wp-block-heading" id="h-types-of-trustees-and-their-roles"><strong>Types of Trustees and Their Roles</strong></h2>



<p><span>Not all trustees serve in the same capacity. Depending on the type of trust and its purpose, trustees can have varying degrees of control and responsibility.</span></p>



<h4 class="wp-block-heading" id="h-individual-vs-corporate-trustees"><span>Individual vs. Corporate Trustees</span></h4>



<ul class="wp-block-list">
<li><strong>Individual Trustees</strong><span>: Often a trusted family member or friend, they bring a personal touch but may lack professional expertise.</span></li>



<li><strong>Corporate Trustees</strong><span>: Institutions like banks or trust companies provide professional management but may lack personal insight into family dynamics.</span></li>
</ul>



<p>&nbsp;</p>



<h4 class="wp-block-heading" id="h-revocable-vs-irrevocable-trusts"><span>Revocable vs. Irrevocable Trusts</span></h4>



<ul class="wp-block-list">
<li><strong>Revocable Trusts</strong><span>: The grantor can change or revoke the trust, and the trustee&#8217;s role is typically more administrative.</span></li>



<li><strong>Irrevocable Trusts</strong><span>: These trusts cannot be changed once established, and the trustee must manage assets with strict adherence to the trust terms.</span></li>
</ul>



<p>&nbsp;</p>



<h4 class="wp-block-heading" id="h-successor-trustees"><span>Successor Trustees</span></h4>



<ul class="wp-block-list">
<li><span>If the primary trustee cannot serve due to incapacity or resignation, a successor trustee steps in to manage the trust without court intervention.</span></li>
</ul>



<p>&nbsp;</p>



<h2 class="wp-block-heading" id="h-hypothetical-scenarios-illustrating-the-role-of-trustees"><strong>Hypothetical Scenarios Illustrating the Role of Trustees</strong></h2>



<p><span>To better understand the responsibilities and challenges of trustees, let’s explore some real-world-inspired scenarios.</span></p>



<h4 class="wp-block-heading" id="h-scenario-1-managing-a-special-needs-trust"><span>Scenario 1: Managing a Special Needs Trust</span></h4>



<p><span>Emma, mother of a child with special needs, sets up a <a href="https://simplytrust.io/2984/what-is-a-special-needs-trust/">special needs trust</a> to ensure her son, Jake, has financial security without losing government benefits. She appoints her sister, Laura, as trustee. Laura must:</span></p>



<ul class="wp-block-list">
<li><span>Make careful distributions to avoid affecting Jake’s eligibility for public assistance.</span></li>



<li><span>Ensure funds cover medical expenses, therapies, and quality-of-life needs.</span></li>



<li><span>Work with legal and financial professionals to ensure compliance with state and federal regulations.</span></li>
</ul>



<h4 class="wp-block-heading" id="h-scenario-2-distributing-assets-fairly"><span>Scenario 2: Distributing Assets Fairly</span></h4>



<p><span>James establishes a trust for his three children, stipulating that each will receive funds upon reaching age 25. When James passes away, his best friend and trustee, Michael, must:</span></p>



<ul class="wp-block-list">
<li><span>Ensure fair distribution according to the trust&#8217;s timeline.</span></li>



<li><span>Mediate any disputes among siblings who may want their share sooner.</span></li>



<li><span>Invest trust funds prudently to preserve their value until the final disbursement.</span></li>
</ul>



<h4 class="wp-block-heading" id="h-scenario-3-managing-a-business-in-a-trust"><span>Scenario 3: Managing a Business in a Trust</span></h4>



<p><span>A family business is placed in a trust to provide for future generations. The appointed trustee, Sarah, is responsible for:</span></p>



<ul class="wp-block-list">
<li><span>Overseeing business operations and ensuring it remains profitable.</span></li>



<li><span>Deciding whether to sell, retain, or expand the business per the grantor’s wishes.</span></li>



<li><span>Balancing the interests of multiple beneficiaries, some of whom want to cash out while others want to keep the business running.</span></li>
</ul>



<h4 class="wp-block-heading" id="h-scenario-4-handling-a-spendthrift-beneficiary"><span>Scenario 4: Handling a Spendthrift Beneficiary</span></h4>



<p><span>Mark sets up a trust for his son and sole beneficiary, Ryan, who has a history of reckless spending. (Protecting beneficiaries from themselves is actually a thing.) The trustee, John, must:</span></p>



<ul class="wp-block-list">
<li><span>Enforce spendthrift provisions, preventing Ryan from squandering his inheritance.</span></li>



<li><span>Approve distributions only for necessities and responsible investments.</span></li>



<li><span>Manage Ryan’s expectations while ensuring financial stability.</span></li>
</ul>



<h2 class="wp-block-heading" id="h-challenges-trustees-face"><strong>Challenges Trustees Face</strong></h2>



<p><span>Being a trustee is not always straightforward. Many encounter challenges that require careful navigation and problem-solving.</span></p>



<h4 class="wp-block-heading" id="h-legal-liability"><span>Legal Liability</span></h4>



<p><span>A trustee can be held personally liable if they mismanage trust assets or fail to comply with legal obligations. If they invest funds recklessly and cause a loss, they’re open to lawsuits by beneficiaries.</span></p>



<h4 class="wp-block-heading" id="h-balancing-beneficiary-interests"><span>Balancing Beneficiary Interests</span></h4>



<ul class="wp-block-list">
<li><span>A trustee must remain neutral and avoid favoritism, especially when managing family trusts.</span></li>



<li><span>Disputes may arise when one beneficiary wants an early distribution while others prefer to keep funds growing in the trust.</span></li>
</ul>



<p>&nbsp;</p>



<h4 class="wp-block-heading" id="h-complex-tax-and-legal-considerations"><span>Complex Tax and Legal Considerations</span></h4>



<ul class="wp-block-list">
<li><span>Trusts often have complex tax structures that require professional oversight.</span></li>



<li><span>Mistakes in tax filings or failure to comply with state regulations can lead to penalties.</span></li>
</ul>



<p>&nbsp;</p>



<h4 class="wp-block-heading" id="h-emotional-conflicts"><span>Emotional Conflicts</span></h4>



<ul class="wp-block-list">
<li><span>Family dynamics can complicate decision-making, especially if a trustee must say no to a beneficiary’s request.</span></li>



<li><span>Trustees may have to mediate disputes while ensuring that they meet the trust’s objectives.</span></li>
</ul>



<p>&nbsp;</p>



<h2 class="wp-block-heading" id="h-how-to-choose-the-right-trustee"><strong>How to Choose the Right Trustee</strong></h2>



<p><span>Given the complexity of the role, selecting the right trustee is critical. Here are key considerations:</span></p>



<h4 class="wp-block-heading" id="h-qualities-of-a-good-trustee"><span>Qualities of a Good Trustee</span></h4>



<ul class="wp-block-list">
<li><strong>Integrity</strong><span> – A trustee must act in the best interests of the beneficiaries at all times.</span></li>



<li><strong>Financial Acumen</strong><span> – Managing investments and financial decisions is a key part of the role.</span></li>



<li><strong>Communication Skills</strong><span> – Regular updates and clear explanations help avoid misunderstandings.</span></li>



<li><strong>Impartiality</strong><span> – The ability to remain neutral and enforce trust terms fairly is essential.</span></li>
</ul>



<h4 class="wp-block-heading" id="h-professional-vs-personal-trustee"><span>Professional vs. Personal Trustee</span></h4>



<ul class="wp-block-list">
<li><span>If a trust requires sophisticated investment management, a corporate trustee may be a better choice.</span></li>



<li><span>If family knowledge and a personal connection are priorities, an individual trustee may be preferable.</span></li>
</ul>



<p>&nbsp;</p>



<h2 class="wp-block-heading" id="h-the-crucial-role-of-trustees"><strong>The Crucial Role of Trustees</strong></h2>



<p><span>The </span>role of trustees<span> is one of great responsibility, requiring diligence, fairness, and financial competence. Trustees play a vital role in ensuring assets are managed wisely and beneficiaries receive their intended benefits. Whether you are selecting a trustee for your own estate or considering taking on the role yourself, understanding the complexities involved is essential.</span></p>



<p><span>A trustworthy individual or institution with clear trust terms in hand can help ensure that your estate is managed with care and integrity. A well-managed trust can bring peace of mind to both grantor and beneficiaries, safeguarding financial security for years to come.</span></p>


The Crucial Role of Trustees


<p><span>If you’ve ever heard someone mention the word </span><em>trustee</em><span> in the context of <a href="https://simplytrust.io/2514/what-is-estate-planning/">estate planning</a> and thought “sounds important, whatever it means,” you’re not alone. Trusts can seem complicated, but once you break them down they’re easier to understand. And trustees? They’re the heart of the operation.</span></p>



<p><span>Let’s explore what a trustee is, what they do, and why choosing the right one matters.</span></p>



<h2 class="wp-block-heading" id="h-trustee-the-basics"><strong>Trustee, the Basics</strong></h2>



<p><span>A <a href="https://simplytrust.io/2540/glossary-of-estate-planning-terms/">trustee</a> is the person (or organization) responsible for managing a trust and carrying out its terms. Think of them as the trust’s manager or caretaker. Their job is to oversee the trust’s assets, ensure their proper use, and follow the instructions laid out by the person who created the trust (known as the </span><em>grantor</em><span>).</span> (By the way, their job differs for <a href="https://simplytrust.io/3718/simple-trusts-and-complex-trusts-the-differences/">simple trusts and complex trusts</a>.)</p>



<p><span>Whether the trust is set up to provide for family members, support a charitable cause, or even care for a beloved pet, the trustee is the one making sure everything goes according to plan.</span></p>



<h2 class="wp-block-heading" id="h-what-does-a-trustee-do"><strong>What Does a Trustee Do?</strong></h2>



<p><span>Being a trustee comes with some important responsibilities. Here’s a look at what their role typically involves:</span></p>



<ol class="wp-block-list">
<li><strong>Managing Assets:</strong><span> Trustees are in charge of the trust’s property, which could include money, real estate, investments, or personal items. They’re responsible for keeping these assets safe and growing them if possible.</span></li>



<li><strong>Following Instructions:</strong><span> Every trust comes with specific rules about how to use its assets. For example, a trust might stipulate that funds go to a beneficiary every month or only at certain times for specific expenses, like education or healthcare. It’s the trustee’s job to follow these instructions to the letter.</span></li>



<li><strong>Communicating with Beneficiaries:</strong><span> Trustees often serve as a link between the trust and its beneficiaries (the people or organizations that benefit from it). This includes providing updates, answering questions, and ensuring everyone knows what’s going on.</span></li>



<li><strong>Record Keeping:</strong><span> Trustees must keep detailed records of how they manage and distribute the trust’s assets. Transparency is key, and these records help ensure fair handling of everything.</span></li>



<li><strong>Handling Taxes:</strong><span> Trusts can have specific tax obligations, and the trustee is responsible for meeting these obligations. This could mean filing tax returns on behalf of the trust or paying taxes out of the trust’s funds.</span></li>
</ol>



<h2 class="wp-block-heading" id="h-who-can-be-one"><strong>Who Can Be One?</strong></h2>



<p><span>Almost anyone can serve as a trustee, but not everyone is the </span><em>right</em><span> choice. Trustees can be:</span></p>



<ul class="wp-block-list">
<li><strong>Individuals:</strong><span> Often a family member, friend, or trusted advisor.</span></li>



<li><strong>Professionals:</strong><span> Attorneys, financial planners, or accountants with experience in managing trusts.</span></li>



<li><strong>Corporate Trustees:</strong><span> Banks or trust companies that specialize in managing trusts.</span></li>
</ul>



<h2 class="wp-block-heading" id="h-why-does-choosing-the-right-one-matter"><strong>Why Does Choosing the Right One Matter?</strong></h2>



<p><span>The trustee has a significant amount of responsibility and power. If they don’t manage the trust properly or fail to follow its terms, the trust might not achieve its goals. This makes selecting the right person or organization critical to the trust’s success.</span></p>



<p><span>The best trustee is someone who’s trustworthy (no surprise there), organized, and capable of handling financial responsibilities. If the trust involves complex assets or rules, choosing a professional trustee can make things easier.</span></p>



<h2 class="wp-block-heading" id="h-trustee-summed-up"><strong>Trustee, Summed Up</strong></h2>



<p><span>In short, a trustee plays a crucial role in ensuring a trust operates smoothly. They’re the ones who make sure the trust’s assets are managed wisely, beneficiaries are cared for, and the grantor’s wishes are honored. So, whether you’re creating a trust or named as a trustee, understanding this role is key to effective estate planning.</span></p>



<p><span>It’s a big job—but when done well, it can provide incredible peace of mind for everyone involved.</span></p>


What Is a Trustee Anyway?


<p><span>Setting up a trust is an excellent way to manage and protect your assets, but creating the trust is just the first step. To make the trust effective, you need to &#8220;fund&#8221; it. If you’re scratching your head at this point, don’t worry. We’ll break it down for you.</span></p>



<div class="schema-faq wp-block-yoast-faq-block"><div class="schema-faq-section" id="faq-question-1737242082323"><strong class="schema-faq-question"><strong>What Does It Mean to Fund a Trust?</strong></strong> <p class="schema-faq-answer"><span>Funding a trust simply means transferring ownership of your assets into the trust. Before you fill it, the trust is just an empty bucket. To make the bucket useful, you need to fill it with your belongings—whether those are tangible items like real estate or intangible ones like financial accounts. Once in the trust, you can manage these assets how you want.</span></p> </div> </div>



<h2 class="wp-block-heading" id="h-why-is-it-important"><strong>Why Is It Important?</strong></h2>



<p><span>An unfunded trust doesn’t accomplish much. If your trust is empty, your assets will not bypass the probate process, which is often time-consuming and costly. Additionally, the terms of your trust may not apply to assets that aren’t in there, potentially creating confusion or challenges for your loved ones.</span></p>



<p><span>By funding your trust, you ensure that everything runs smoothly and aligns with your estate planning goals.</span></p>



<h2 class="wp-block-heading" id="h-common-types-of-assets"><strong>Common Types of Assets</strong></h2>



<p><span>While not every asset is eligible or practical to put in a trust, many can—and should—be in there. Here are some common examples of <a href="https://simplytrust.io/2693/what-goes-in-trusts-here-are-50-things/">what goes in trusts</a>:</span></p>



<ul class="wp-block-list">
<li><strong>Real Estate:</strong><span> Your home or other properties.&nbsp;</span></li>



<li><strong>Financial Accounts:</strong><span> This includes bank accounts, investment portfolios, and even retirement accounts. Although some types of accounts (like IRAs) may require special considerations.</span></li>



<li><strong>Personal Property:</strong><span> Valuable items such as jewelry, art collections, or family heirlooms.</span></li>



<li><strong>Business Interests:</strong><span> Ownership stakes in a business (to ensure continuity and proper management).</span></li>



<li><strong>Life Insurance Policies:</strong><span> Life insurance policies themselves are <a href="https://simplytrust.io/3739/5-assets-not-for-trusts-what-not-to-put-in-your-trust/">not for trusts</a>, at least in terms of funding. However, you can name the trust as a beneficiary of life insurance proceeds.</span> </li>
</ul>



<h2 class="wp-block-heading" id="h-how-do-you-fund-a-trust"><strong>How Do You Fund a Trust?</strong></h2>



<p><span>Funding a trust involves updating the ownership of each asset. Here’s a general idea of how it works:</span></p>



<ol class="wp-block-list">
<li><strong>Change Titles or Deeds:</strong><span> For assets like real estate or vehicles, you’ll need to update the title to reflect the trust as the owner.</span></li>



<li><strong>Update Beneficiary Designations:</strong><span> For assets like life insurance or retirement accounts, designate the trust as the beneficiary.</span></li>



<li><strong>Assign Ownership:</strong><span> Personal property and similar assets may need a simple assignment document to transfer them into the trust.</span></li>
</ol>



<p><span>Every step requires attention to detail and, sometimes, additional documentation or coordination with financial institutions.</span></p>



<h2 class="wp-block-heading" id="h-what-happens-if-you-don-t-fund-a-trust"><strong>What Happens If You Don’t Fund a Trust?</strong></h2>



<p><span>If you’ve created a trust but haven’t funded it, your estate could face the same hurdles—like probate—that you were trying to avoid in the first place. Additionally, your carefully crafted instructions may not apply, leaving your loved ones without the guidance you wanted them to have.</span></p>



<h2 class="wp-block-heading" id="h-what-fund-a-trust-means"><strong>What ‘Fund a Trust’ Means</strong></h2>



<p><span>Funding a trust might seem technical, but it’s a crucial step in your estate planning journey. Taking the time to properly transfer your assets ensures your trust operates effectively, providing peace of mind for you and your loved ones. If you’re considering a trust or have one in place, make funding it a top priority. After all, a trust can only work the way you want it to when if you properly fund it.</span></p>



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