While establishing a trust, preparing the appropriate documentation does not complete the process: When funds (i.e., property) are not properly transferred into it, it becomes known as an unfunded trust. Untrusted funds not only elevate the risk of disputes upon the estate owner’s death but also significantly complicate the property transfer process.
When you are dealing with an unfunded trust in Roseville, CA, your best option is to consult with probate attorney John B. Palley from the offices of Meissner, Joseph & Palley, Inc.
Avoid Having Unfunded Trusts
Many California residents create a living trust to ensure that any surviving dependents are taken care of in the event of the property owner’s death. However, many fail to grasp that transferring ownership to a designated trustee is a key element of this process. Without doing so, the trustee is unable to enter their legal rights of controlling the property and distributing it to the decedent’s beneficiaries. The assets then pass through the probate court and are distributed based on the default survivorship laws.
In order to avoid the turmoil that would inevitably ensure with an unfunded trust, trustees and/or beneficiaries are entitled to a variety of options, including:
- A full probate process.
- Assets valued under $150,000 – The court prepares a simple affidavit compelling a financial institution or other third party to release the assets into the care of the designated trustee.
- Heggstad Petition – When there is proof that the decedent unintentionally failed to fund the trust, this petition can also help release the assets into the trustee’s care.
- Pour Over Will – When a decedent names the trust as the sole heir of his/her estate, any assets that were not properly funded into the trust are transferred to the intended beneficiaries once probate is complete.
- And more.
Get Professional Probate Help
Dealing with an unfunded trust after your family member’s death can be difficult, and no form of probate is ever an attractive option. However, working with a dedicated probate lawyer can significantly simplify the process and ensure that you know your rights and the option that best applies to your individual situation.
If you are ready to discuss unfunded trusts in Roseville, CA, we welcome you to contact the law firm of Meissner, Joseph & Palley, Inc. today by calling 916-774-0560 or filling out the form below and we will contact you as soon as we can.