If Your Trust Is Not Properly Funded, It’s Worthless

Recently I met with an international couple who have a manufacturing business in Orange County. He is from Japan she is from China. It is a Horatio Alger success story. They asked me to prepare an estate plan to eliminate probate, eliminate the 40% death tax, keep their assets in their family bloodline for the next 90 years. They also wanted to make sure they had creditor protection and their in-laws were excluded.

As it is my custom, I sent out my “proposed” draft of their estate plan and a detailed listing on Schedule “A” of their $30 million dollar estate. I explained that all major assets had to be listed. Over the phone they said everything was included on the Schedule “A” of their trust.

When they arrived for our signing I asked them to again review everything in advance of signing in front of our notary. They discovered that their corporation worth over $10 million dollars was still in his individual name. This omission could have created a major probate with years of delay.

The lesson learned if your trust is not properly funded, it’s worthless. To eliminate probate make sure all your assets are re-titled in the name of the trust. Some business owners forget and leave their business out of their estate plan.

Call the Trust Doctor, W. Bailey Smith TODAY at (949) 833-8891 to update your estate plan.