The Importance of Being Earnest (And Funding Your Trust)
Oscar Wilde’s celebrated play, “The Importance of Being Earnest,” is a witty comedy of mistaken identities and societal expectations. While estate planning might lack the play’s humor, it echoes the importance of careful planning and meticulous execution. An artfully crafted estate plan, especially regarding trusts, protects your wishes and ensures a smooth transition of assets to your loved ones.
What is a Trust?
A trust is a legal entity that holds your assets (property, investments, etc.). A trustee, whom you appoint, manages the trust according to your instructions for the benefit of designated beneficiaries. Trusts offer advantages like avoiding probate (the court-supervised asset distribution process) and ensuring privacy.
The Pitfalls of an Unfunded Trust
Much like the fictional character of ‘Bunbury’ in Wilde’s play, an unfunded trust is a mere concept. Despite good intentions, creating a trust without transferring assets into it renders it ineffective. Here’s why proper funding matters:
- Probate Avoidance: One of the prime benefits of a trust is bypassing the probate process, which can be time-consuming, expensive, and a matter of public record. If left unfunded, it would still leave assets subject to probate.
- Asset Protection: Trusts can provide a degree of protection from potential creditors or lawsuits. This benefit is lost if your assets remain outside the trust.
- Control Over Distribution: Trusts allow for detailed instructions on how and when assets are distributed to your beneficiaries. If a trust is empty, it cannot fulfill those designed purposes.
Failing to fund your trust can have unintended consequences, frustrating your efforts to protect and distribute your assets. It could undermine well-laid plans and lead to delays, extra costs, and even potential family discord.
Let Us Help You
Establishing and adequately funding a trust requires careful consideration alongside other estate planning tools. An experienced estate planning attorney in Maryland can guide you through the process, ensuring your wishes are documented and implemented effectively.
The Law Offices of Terri D. Mason focus in estate planning, including trusts, wills, and conservatorships. We also navigate the complexities of Social Security Disability benefits. Our trust and estate lawyers in Maryland understand that these matters are both legal and deeply personal. We offer compassionate counsel to help you plan confidently for the future.
Don’t leave your assets and legacy hanging in the balance. If you have questions about estate planning, trusts, or want to protect your hard-earned assets, contact us today. With careful planning and legal advice, you can ensure your future, and that of your loved ones, is secure.