Why Having a Trust Isn’t the Same as Having a Plan That Works

Many families take comfort in knowing they “have a trust.” It feels like a box checked—an important milestone accomplished. And it is an important step. But here’s the hard truth we see far too often:

Having a trust does not automatically mean you have a plan that actually works.

A trust is a tool. A working estate plan is a system. And the difference between the two usually comes down to funding, alignment, and follow-through.

The Most Common Problem: The Trust Exists… But the Assets Don’t Match

A trust only controls what it owns.

That sounds simple, yet it’s where many plans quietly break down.

Common scenarios we see:

• The trust is signed and notarized, but bank accounts were never transferred.
  
• Real estate is still titled in an individual name.
  
• New assets were acquired years later but never aligned with the trust.
  
• Beneficiary designations contradict what the trust says.
  

When this happens, families are often shocked to learn that assets they believed were protected by the trust still require probate or court involvement.

The result?
Delays, additional costs, and unnecessary stress—exactly what the trust was meant to prevent.

Funding Gaps: The Silent Estate Planning Failure

Trust funding is not a one-time task. It’s a process—and often an ongoing one.

Funding gaps typically happen because:

• Instructions felt overwhelming or unclear at the time of signing.
  
• Life changed: new accounts, refinances, moves, inheritances.
  
• No one revisited the plan after it was created.
  

Even a well-drafted trust can fall short if funding is incomplete. Unfortunately, these gaps are often discovered only after someone has passed away or become incapacitated—when options are more limited.

Asset Alignment Matters More Than People Realize

A working plan requires alignment across your entire financial picture, including:

• Trust provisions
  
• Property titles
  
• Financial accounts
  
• Beneficiary designations
  
• Business interests
  

If these elements don’t align, your plan may produce outcomes you never intended.

For example:

• A trust calls for equal distribution, but a beneficiary designation bypasses the trust entirely.
  
• A home was meant to avoid probate, but the deed was never updated.
  
• A business interest is addressed in the trust, but ownership records were never changed.
  

A plan only works when the legal documents and real-world paperwork tell the same story.

Where Heggstad Petitions Come In

When a trust should own an asset—but doesn’t—there may still be a solution.

In California, a Heggstad Petition can sometimes be used to ask the court to confirm that an asset belongs in the trust, even if it was never formally transferred.

This can be an effective remedy, but it’s important to understand:

• It is not automatic
  
• It requires court approval
  
• It can involve additional time, cost, and complexity
  

Heggstad Petitions are best viewed as a repair tool, not a planning strategy. The goal is always to avoid needing one—but when gaps exist, they can play a critical role in keeping a plan on track.

A Trust Is the Foundation—Not the Finish Line

A true estate plan:

• Evolves as your life changes
  
• Is properly funded and maintained
  
• Keeps assets aligned over time
  
• Minimizes court involvement rather than shifting it
  
• Works when your family actually needs it to
  

If your trust hasn’t been reviewed recently—or if you’re unsure whether all your assets are properly aligned—it may be time for a closer look.

Ready to Make Sure Your Plan Actually Works?

If you already have a trust, the most important question isn’t whether it exists—it’s whether it’s doing what you intended today.

A review can help identify:

• Assets that were never transferred into your trust
  
• New property or accounts that may fall outside your plan
  
• Misaligned titles or beneficiary designations
  
• Potential probate exposure—and whether corrective tools may be needed
  

If you’re unsure where your plan stands, reach out to our team to schedule a conversation. We’re happy to help you determine whether your trust is simply in place—or truly working