Now that you’re preparing for the future, you’re looking into how you can use trusts in your estate plan. You’re wondering: Is it possible to fund your trust after you die?
By learning the answer to this question, you can decide if starting a trust is the right move for you.
Funding a Trust After Death
It is possible to fund a trust after death. Following your death, the trustee will transfer assets into your trust. Before they distribute the assets into your trust, they must make sure that probate assets go through the probate process, that they follow through with bequests and legacies, and that your debts like your estate taxes are being paid. Then, the trustee will ensure that any assets you made payable to the trust are transferred there. For example, if you had a life insurance policy and you named the trust as the beneficiary, they will oversee the process to make sure the funds actually end up in there.
Just keep in mind that not all of your property can go into your trust. It’s always a good idea to hire an estate planning attorney to help you with the process to guarantee you get it right and there won’t be any issues after you die.
Revocable vs. Irrevocable Trusts
Typically, people will set up a revocable or irrevocable trust. A revocable trust gives you control over your trust while you’re still alive, while an irrevocable trust does not. However, the latter can be useful if you receive government benefits or you need to protect your assets from legal judgments and creditors.
Contacting Legacy Law Group
If you need help with creating a trust, you can contact the estate planning attorneys at Legacy Law Group in Eastern Washington, Spokane Valley, and Spokane itself. Get in touch with us at (509) 315-8087.