When it comes to estate planning, setting up a trust can feel like checking off a major to-do—and it is. But simply creating a trust isn’t enough. In fact, many families are surprised to learn (too late) that the trust their loved one carefully set up… didn’t actually work.
Here’s the truth: A trust is only as effective as the strategy behind it—and the ongoing attention it receives. Let’s break down what really makes a trust work the way you intended.
1. Funding the Trust
The #1 reason trusts fail is simple: assets were never moved into them.
“Funding” a trust means retitling certain assets—like real estate, bank accounts, or brokerage accounts—so that the trust becomes the legal owner. If you forget to do this (or only do it partially), those assets may still need to go through probate, defeating one of the main reasons you created a trust in the first place.
Pro Tip: If you’re not sure what’s in your trust, it may be time for a review.
2. Keeping It Updated
Your trust should evolve as your life does. Marriages, divorces, births, deaths, changes in assets, and shifting goals all impact your plan.
An outdated trust can create confusion or even conflict—especially if it names the wrong beneficiaries, trustees, or guardians.
Good Rule of Thumb: Review your trust at least every 3–5 years, or after any major life change.
3. Naming the Right Trustees
The person (or people) you name as trustee will be in charge of carrying out your wishes, managing your assets, and distributing them according to your instructions.
Choosing the wrong person—someone who isn’t trustworthy, financially responsible, or up for the job—can create stress for your beneficiaries and delay or derail the process.
Consider This: Would you want this person managing your affairs if you couldn’t?
4. Coordinating with Your Other Plans
Your trust doesn’t stand alone. It works alongside other key pieces of your plan—like your will, powers of attorney, beneficiary designations, and even your business or tax strategies.
If these elements are out of sync, your plan can get messy. For example, naming different beneficiaries on your retirement accounts than in your trust may lead to confusion or unintended outcomes.
Pro Tip: Your estate planning attorney should regularly help you “connect the dots” across all parts of your plan.
5. Communicating Your Wishes
Finally, a trust is more than a legal document—it’s a reflection of your values. While the legal terms matter, don’t overlook the human side of planning. Let your loved ones and your trustee know your goals and the “why” behind your decisions.
Even a simple conversation or letter of intent can go a long way in avoiding conflict and honoring your legacy.
Need a Trust Check-Up?
If you already have a trust but aren’t sure whether it’s properly funded, up to date, or aligned with your broader goals—we can help. And if you’ve been meaning to set one up but haven’t yet, we’re here for that too.
Let’s make sure your plan actually works the way you want it to—now and in the future.
Call us at (949) 333-3702 or schedule a trust review today.
