Business Succession, Estate Planning, Probate, Trusts, Wealth, Wills

Underfunded Trusts are Better Than Nothing

This post is about the incredibly exciting topic of underfunded trusts.

Sarcasm? Maybe a little; but I did want to say that an underfunded trust is better than a will in my opinion… and anything is better than no will or no trust at all!

A client of mine had a trust with only a few assets transferred into it. There were assets outside of the trust that should have gone in before her husband died. This is an underfunded trust.

Worse yet, she still had to go through probate.

But, thankfully, there was a pour-over will alongside the trust that directed all assets outside of the trust to go into the trust upon the husband’s passing.

This means there’s only one beneficiary to deal with in probate. Only one notice to send out. Only one person to approve of the transfers.

The client’s situation is much, much simpler because of this pour-over will.

Granted, the best case scenario is a trust will all the assets, but sometimes that doesn’t happen. The second best option would be an under-funded trust with a pour-over will. The third best? Just a will.

The worst case? Nothing at all.

At Legion Law, we focus on getting you to the best and give flexible options if you want the second or third best… it’s not recommended, but there’s always room for improvement!

It wouldn’t be the Legion Law Letter without offering information on how to get in touch with your estate planning and probate attorney. Feel free to schedule a meeting at legionlawpllc.com/contact-us/ for any questions, concerns, or issues you need resolved.

Cheers,


Derek Christensen

Founder of Legion Law, PLLC

One thought on “Underfunded Trusts are Better Than Nothing

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