If you’ve taken the thoughtful step of creating a revocable living trust in California, congratulations—you’ve already taken one of the most powerful actions available to protect your estate, avoid probate, and simplify things for your loved ones. But your estate plan isn’t complete unless you also do something just as important:
👉 You must fund your trust.
🔍 What Does “Funding a Trust” Mean?
“Funding” your trust means transferring ownership of your assets—like your home, bank accounts, investments, and even business interests—into the name of your trust. Without this step, your trust is like an empty vessel: perfectly structured but unable to do the job it was designed for.
For example:
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✅ Before funding: Your house is titled in your personal name.
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✅ After funding: Your house is titled in the name of your trust (e.g., John and Jane Smith, Trustees of the Smith Family Trust).
⚖️ Why Funding Is Essential in California
1. Avoiding Probate
California’s probate process is expensive and time-consuming, often taking 9–18 months and costing thousands in statutory fees. California probate costs are driven by Statute, which include not only attorney fees but also personal representative fees which are calculated based on the gross value of the estate. This means that any debts and/or mortgages are not subtracted from the gross estate. For example: if a couple owned a home that was valued at $950,000. the total statutory for either the executor or attorney would be approximately $22,000. However, it is typical in a California probate that both the attorney and executor take fees which would double the cost to approximately $44,000.
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📌 Unfunded assets go through probate, even if you have a trust.
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💸 Your family could still be stuck in court, paying fees that could’ve been avoided entirely.
2. Ensuring Your Wishes Are Followed
If an asset isn’t in your trust at the time of your death, it may:
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Be distributed according to your will (if you have one),
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Be subject to state intestacy laws (if you don’t),
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Or be tied up in disputes between family members or beneficiaries.
Proper funding ensures your successor trustee can immediately carry out your instructions without court involvement.
🚫 What Happens If You Don’t Fund Your Trust?
Many people are surprised to learn that an unfunded or partially funded trust provides little to no benefit after death. The assets not in your trust will be treated as though the trust doesn’t exist—putting your estate at risk of:
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Probate proceedings
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Delays in asset distribution
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Exposure to creditors
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Potential family disputes
Even a pour-over will (which directs unfunded assets to your trust after death) must go through probate—defeating the purpose of the trust in the first place.
🧾 What Assets Should You Fund Into Your Trust?
Here’s a basic checklist:
| Asset Type | Should It Be Funded? |
|---|---|
| Real estate | ✅ Yes – via grant deed to the trust |
| Bank accounts | ✅ Yes – re-title or name the trust as beneficiary |
| Investment accounts | ✅ Yes – re-title or designate the trust |
| Business interests | ✅ Yes – depending on entity type |
| Personal property | ✅ Often included via a general assignment |
| Retirement accounts | ⚠️ No – but name trust as contingent beneficiary if appropriate |
Always consult with an estate planning attorney and tax advisor for asset-specific guidance.
🛠 How to Fund Your Trust the Right Way
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Real Estate: Prepare and record a new deed transferring the property into the trust. This must be notarized and recorded with the county (and often accompanied by a Preliminary Change of Ownership Report in California).
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Bank and Brokerage Accounts: Visit your financial institutions and ask to re-title the accounts in the name of your trust.
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Life Insurance and Retirement Accounts: Update the beneficiary designations—not always retitled, but the trust may be listed as a beneficiary where appropriate.
🧑⚖️ Don’t Go It Alone—We Help You Fund It Properly
At Nick Beljajev Law, we don’t just create estate plans—we complete them.
We help you:
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Draft your trust documents,
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Properly fund your assets,
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Coordinate with your financial professionals,
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And provide custom guidance to keep your plan up to date over time.
✅ Final Thoughts
Your California living trust is a powerful tool—but only when it’s properly funded. Failing to transfer assets into your trust is like buying a safe and leaving your valuables on the kitchen counter. Protect your legacy, minimize cost and delay, and give your loved ones peace of mind by ensuring your trust is fully funded.
Need help reviewing or funding your trust? Contact us for a strategy session.
We’ll help make sure your estate plan actually does what you created it to do.
