DGAA bLAWg

What Happens to an Unfunded Trust?

Web Admin - Wednesday, June 11, 2014

illinois unfunded trust lawyerPreparing estate planning documents is a key step in ensuring that a person’s final wishes are respected throughout the probate process, and a recent survey shows that the majority of Americans understand this fact. However, when setting up a trust, preparing the documents does not finish the process. If the person who sets up the trust fails to properly transfer their assets into it, it can become an underfunded or unfunded trust. This lack of proper funding can lead to a failure of a person’s estate plan, and also increases the potential for disputes throughout the process of probating the estate.

What an Unfunded Trust Is

A trust is a legal construction that involves a settlor, a trustee, and a beneficiary. The settlor creates the trust and transfers assets into it. The trustee manages the assets in the trust and they do so with the best interests of the beneficiary in mind. The drafting of the trust instrument is a key part of this process. That document will outline many of the legal rights and responsibilities of the trustee and the beneficiary, and it can provide instructions for the trustee to follow.

Many people think that once they draft the trust document, the process is complete and the trustee will be able to carry out their desires. This is not the case. The person will also need to legally transfer the assets to the trust. Without doing so, the trustee may not actually be able to control the assets and distribute them in accordance with the settlor’s instructions.

The Consequences of Improper Trust Funding

Improper trust funding can lead to disputes between heirs throughout the probate process. This is because if the settlor does not properly fund the trust the trustee has no legal authority to carry out the wishes of the settlor. Instead, the assets would pass through any will that the settlor left behind, or they may pass through right of survivorship, the default way that courts distribute assets. This means that the beneficiaries of the trust may end up in a legal battle with the heirs listed in the will over their rights to the assets.

Additionally, even if the settlor did not leave a will and there are no disputes, the assets will still need to go through the state probate process to be distributed. This can lengthen the amount of time it takes to wind down a person’s affairs and tends to be a less convenient process than if the trust had been properly funded.

If you are thinking about how best to carry out your final wishes, seek out an Illinois estate planning attorney for help. Our skilled team of lawyers helps clients in northwest suburban towns like Mount Prospect, Arlington Heights, and Schaumburg understand their estate planning options and create the best plan for themselves.

About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.


Recent Posts


Tags

Illinois traffic laws Crystal Lake personal injury lawyer rumble strips business litigation Buffalo Grove probate lawyer Buffalo Grove corporate attorney insurance claims Rolling Meadows defective products lawyer Arlington Heights Traffic Lawyer employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys insurance denial appeals Crystal Lake medical malpractice attorneys Rolling Meadows insurance dispute lawyers, insurance dispute Exclusions low-ball insurance settlement boating under the influence Jay Andrew Rolling Meadows drug defense attorney Deer Park employment law attorney breathalyzer test advance healthcare directive coronavirus DUI attorney Long Grove estate planning pet law Crystal Lake bike accident lawyer Des Plaines real estate lawyer spinal cord injuries insurance dispute TBI IRELA estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers Barrington attorney field sobriety test Inverness real estate lawyer Des Plaines medical malpractice attorney drunk driving statistics Arlington Heights insurance attorney natural gas paid sick leave Crystal Lake pedestrian accident lawyer Arlington Heights criminal lawyer unauthorized overtime Family Medical Leave Act Inverness probate lawyer Inverness estate planning lawyer Rolling Meadows marijuana attorney Crystal Lake injury attorney Palatine civil litigation lawyer federal crimes product liability fatal car accidents operating agreements Inverness insurance attorney filing a medical malpractice claim healthcare claims traffic laws Illinois traffic attorneys Inverness elder law lawyer residential real estate texting and driving Illinois insurance lawyer marijuana Rolling Meadows real estate attorney DUI defense IRA trust transfer preventable medical errors insurance claim dispute attorney Arlington Heights real estate lawyer child safety Illinois trusts attorney vacation home fines job lawyers meal breaks insurance denials Schaumburg criminal attorney Illinois pet lawyer Deer Park accident attorney Des Plaines personal injury lawyer rollover car crashes Palatine probate lawyer Long Grove wills and trusts attorneys liability DNR Rolling Meadows criminal attorney gift taxes traffic tickets commercial real estate guardianship attorney jet ski accidents Kenilworth estate planning lawyer Illinois pedestrian accident attorney surgical mistakes Illinois insurance disputes workers compensation trusts Palatine real estate lawyer Arlington Heights car crash attorneys denial of life insurance jet ski Barrington civil litigation attorney appealing an insurance claim South Barrington real estate attorney changes to mortgage law Illinois probate lawyer Illinois Wage Payment and Collection Act car crashes Des Plaines personal injury lawyers probate fees speeding personal injury irrevocable trust underfunded trust Arlington Heights injury attorney Arlington Heights Attorney unpaid assessment digital evidence Deer Park workers compensation lawyer pedestrian-automobile accident Illinois Smoke Detector Act Rolling Meadows Traffic Lawyer employee misclassification Long Grove estate planning attorney comp time capital gains tax PTSD Arlington Heights wills and trusts lawyer Deer Park DUI lawyer Illinois medical malpractice lawyers reckless homicide murder charges Des Plaines criminal attorney Illinois rollover accident lawyers denied insurance claims Illinois collections attorney elder law minimum wage Rolling Meadows DUI lawyer commercial leasing Illinois workers compensation attorney personal injury claim Arlington Heights pedestrian accidents personal injury claims Des Plaines civil attorney Super Mario Palatine estate planning lawyer insurance negligence Crystal Lake civil litigation lawyer license suspension estate plan vacation home blood alcohol content Illinois personal injury attorney institutional trustee Barrington Illinois estate planning lawyer modern family estate planning BUI brain injury Illinois construction accident attorney college kids cell phone accidents Buffalo Grove medical malpractice lawyers Rolling Meadows Attorney Arlington Heights personal injury attorney medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers traffic offenses Illinois corporate lawyer rest breaks estate planning lawyer forming a corporation in Illinois Mount Prospect real estate lawyer personal injury attorney Illinois tax attorney Crystal Lake car accident lawyer car crash Home Sale Contingencies workers compensation benefits Des Plaines collections attorney Crystal Lake estate planning lawyer Rolling Meadows tax attorney Buffalo Grove law firm Illinois injury lawyer Rolling Meadows accident lawyer pizza emoji Schaumburg probate attorney Crystal Lake criminal defense attorney Barrington boating accident attorney Palatine punch death estate planning Rolling Meadows medical malpractice lawyers Illinois employment law firm installment contracts Illinois Human Rights Act problem employees liability claims condo association Buffalo Grove car accident lawyer Federal Food Drug and Cosmetic Act LLCs unfunded trust digital media accounts, estate planning, Arlington Heights estate planning attorney, Buffalo Grove traffic lawyers Schaumburg corporate attorney Crystal Lake insurance lawyer Illinois civil litigation lawyer Arlington Heights personal injury lawyer employment law, Illinois employment laws Rolling Meadows car accident lawyers Chicago attorney taxes pedestrian accidents contracts underinsured motorist Arlington Heights car accident lawyer wills and trusts South Barrington real estate lawyer civil rights violation Illinois medical malpractice case expungement products liability mortgage Schaumburg criminal law attorney slip and fall accidents in terrorem provision whistleblower protections underage DUI Mount Prospect wills and trusts lawyers real estate lawyer Rolling Meadows employment law attorneys Illinois real estate Illinois job attorney trucking accident lawyers insurance attorney swimming pools comparative negligence pedestrian injuries, pedestrian fatality wrongful termination Illinois estate planning sole proprietorship ken apicella DUI penalities Crystal lake insurance dispute attorney personal injury accidents Inverness real estate attorney Long Grove real estate lawyer bad faith insurance claims Deer Park motorcycle accident lawyer Schaumburg employment law attorneys commercial leases Arlington Heights trucking lawyer traffic deaths Schaumburg injury lawyer Illinois personal injury lawyers trustee boating DUI Whistleblower Claims Illinois defective products attorney Chicago corporate attorney estate tax Rolling Meadows insurance attorney employee rights Liquor Control Act severance agreements small business Illinois traffic ticket lawyer Illinois red light cameras uninsured motorist Chicago estate planning lawyer car accident lawyer first degree murder insurance claim Crystal Lake accident attorney car accident lawyers car crash injuries pay when paid contract drunk driving Barrington medical malpractice lawyers Illinois lawyer license reinstatement Illinois medical malpractice attorney Riverwoods estate planning lawyer slip and fall GM ignition switches Illinois Workers’ Compensation Commission senior citizens Rolling Meadows insurance lawyer income distribution deducation Schaumburg car accident attorney Arlington Heights wills and trusts attorneys Illinois traffic accident lawyer tax attorney Barrington personal injury attorney Forcible Entry Illinois employment laws rollover accidents Retaliatory Discharge Crystal Lake medical malpractice law firm Chicago insurance claim attorneys Crystal Lake personal injury attorney Arlington Heights accident attorney murder defense subcontractor medical malpractice claims rent to own real estate contracts Do Not Resuscitate probate Illinois law internet independent contractor real estate attorneys accidental death benefits ACA employees Rolling Meadows personal injury attorney Buffalo Grove employment lawyer trauma after an accident real estate closing medical marijuana Transfer on Death Instrument controlled substance Deer Park traffic lawyer Illinois business lawyer Crystal Lake traffic lawyer Palatine corporate attorney Chicago trucking accident attorney Illinois driving without license Des Plaines accident attorney insurance claim denial Palatine injury attorney Arlington Heights TBI attorney DUI right to work Fair Labor Standards Act Schaumburg Attorney employee discrimination Des Plaines drug crimes lawyer Policy Cancellation dram shop law marijuana crimes attorney suspended license Schaumburg personal injury lawyer Illinois insurance dispute lawyers icy parking lots deadly crashes Schaumburg construction accident lawyer Barrington Traffic Lawyer Food and Drug Administration's Food Safety Modernization Act Long Grove estate planning attorneys Rolling Meadows criminal lawyer life insurance policy privacy laws employment attorney Schaumburg real estate lawyer Buffalo Grove personal injury lawyer Palatine elder law attorney Illinois employment law Arlington Heights estate planning attorney Barrington litigation attorney Palatine employment attorney trust payments Rolling Meadows litigation lawyer involuntary manslaughter Legal Info work unions foreclosure Landlord Tenant Ordinance CAM Rolling Meadows traffic law firm Rolling Meadows estate planning attorney financial advisors civil litigation FSLA criminal law IRA benefits Schaumburg wrongful death attorney digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers Illinois small business Illinois attorney golf accidents BAIID Illinois Rolling Meadows probate lawyer distracted driving accident victims Barrington employment attorney pain and suffering motorcycle accident texting while driving employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, Self-Directed IRA Accounts traffic violations personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys natural gas explosion Rolling Meadows business lawyer Illinois insurance claim dispute lawyer manufacturing real estate contract Illinois criminal defense attorney IRS Des Plaines real estate attorney Inverness traffic law firm overtime violations probate claims process Illinois wills and trusts attorneys traffic violations defense Palatine criminal defense lawyer Joliet general practice lawyers caretaker rights Kenilworth estate planning attorney Illinois insurance claim attorney Crystal Lake business law attorneys Buffalo Grove injury lawyer new real estate form Inverness personal injury attorney car collision breach of contract holiday statistics driving insurance claim denials clemency Barrington real estate lawyer Des Plaines personal injury attorney insurance dispute attorney mass shooting Palatine insurance lawyer automated cars DGAA Arlington Heights wills and trusts attorney deed transfer employment law trucking accidents Rolling Meadows employment attorney elder abuse drugs Arlington Heights tax lawyer construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation dealing with problem employees Schaumburg medical malpractice lawyer Illinois living will truck collisions Arlington Heights traffic attorney personal injury lawyer dog bites living trust vs will Deer Park real estate law firm Crystal Lake employment law attorney Illinois insurance claims lawyers car accidents Illinois employment law attorney civil litigation attorney probate lawyer condo Des Plaines injury law firm crossover accidents Deer Park personal injury lawyer insurance adjusters Des Plaines Traffic Lawyer Rolling Meadows corporate lawyer construction contracts traffic accidents Illinois LLC creation insurance agent negligence Palatine personal injury lawyer privacy Class A misdemeanor Schaumburg estate attorney construction accidents Palatine employment lawyer Rolling Meadows insurance dispute lawyers insurance claim dispute Illinois personal injury Schaumburg elder law lawyer startup company sexual images compensatory time investment property Des Plaines drug lawyer drug crimes lawyer Illinois will lawyer digital assets estate attorney pedestrian accident Deer Park criminal attorney wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace Crystal Lake law firm living trust Mount Prospect elder law attorney Palatine corporate law attorneys Illinois speeding lawyer Buffalo Grove traffic attorney estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, School Visitation Rights Act hit and run accident sexual harassment Illinois estate planning law firm back injuries caregiver Illinois jet ski accident lawyer drug crimes liens Chicago will attorney, social media platforms, Illinois estate planning lawyer, Arlington Heights medical malpractice lawyer Illinois traffic attorney denied insurance claim Employment Discrimination Law Crystal Lake car accident attorney landlord tenant law Schaumburg personal injury lawyers Schaumburg civil litigation attorney Illinois wills and trusts Illinois motorcycle accident lawyer Kenilworth estate planning attorneys insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys Des Plaines insurance attorney federal regulations for LLCs Schaumburg personal injury attorney Palatine drug lawyer Schaumburg estate planning attorney medical research Chicago estate planning Inverness injury lawyer power of attorney for healthcare Arlington Heights employment law attorneys probate claims Inverness DUI lawyer hands free device homestead rights Palatine employment law lawyer home inspection lawyer Barrington estate planning attorney Chicago biking tips bicycle accidents traumatic brain injury Barrington employment law firm traumatic brain injuries preventing accidents Schaumburg drug defense lawyer estate planning trusts defective products Illinois mortgages corporate law Chicago employment lawyer Palatine law firm Mt Prospect Attorney trench injuries healthcare food poisoning FMLA Crystal Lake traffic attorney Chicago employment attorney estate planning attorney Buffalo Grove insurance claim dispute lawyers Rolling Meadows boating crash lawyer life insurance claims insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys cell phone blended families wage theft distracted driving accidents Des Plaines tax law firm Illinois trucking safety real estate POA criminal wills Schaumburg employment attorney living wills boating accidents Chicago will attorney real estate zoning Rolling Meadows employment law attorney Chicago lawyer Arlington Heights wills and trusts lawyers Rolling Meadows personal injury lawyers Palatine business attorney life insurance Illinois medical malpractice claim foreclosed rental property drug crime medical malpractice compensation medication errors BAC loopholes Barrington workers compensation attorney Illinois Probate Act of 1975 Illinois bicycle safety Des Plaines motorcycle accident attorney Palatine workers compensation lawyer Buffalo Grove criminal defense lawyer criminal record Barrington criminal defense lawyer insurance disputes gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys Buffalo Grove personal injury attorney Rolling Meadows traffic attorney Long Grove real estate attorney auto accidents license revocation Buffalo Grove real estate attorney attorney fees wrongful death overtime pay Illinois Trust Code workplace sexual harassment Chicago traffic lawyer personal injury law firm Arlington Heights employment attorney Illinois insurance claim dispute lawyers Colin H. Gilbert employment contract fault based insurance Crystal Lake employment lawyer Barrington drug crime attorney fiduciary rule Affordable Care Act hiring employees insurance claim delay Barrington employment law attorney Barrington criminal lawyer Des Plaines DUI attorney cell phone tower data power of attorney real estate leasing Arlington Heights lawyer Illinois elder law attorney insurance agents eluding a police officer Illinois personal injury lawyer probate process Inverness civil lawyer ObamaCare nursing home negligence Inverness corporate attorney Illinois Sales Representative Act murder consent to a search Des Plaines claims law firm Thanksgiving Illinois registered agent Rolling Meadows personal injury lawyer Des Plaines fiduciary rule delay anesthesia errors bike accident Inverness accident lawyer Home Remodeling Repair Act Barrington personal injury lawyer bicycle dooring accidents Chicago car accident lawyer Illinois wrongful termination lawyer loss of consortium Illinois employee rights attorney. spinal cord injury Illinois estate planning attorney head on collisions workers comp DMV dynasty trusts real estate attorney Palatine Attorney Chicago insurance law firm Schaumburg insurance lawyers Schaumburg traffic lawyer criminal defense Illinois insurance attorney Illinois home inspection Deer Park medical malpractice attorney Illinois Transfer on Death Instrument llinois Real Estate Lawyers Association Illinois workplace lawyer pregnant women landlord Crystal Lake employment attorney no contest clauses living trust benefits Illinois employment law attorneys digital information Colin Gilbert medical malpractice Crystal Lake pet attorney Schaumburg drug possession disability benefits Palatine trusts lawyer Des Plaines pet law attorney social media after death agent Attorney Ken Apicella premises liability Crystal Lake tax lawyer employment lawyer estate planning for college students Illinois workers compensation lawyer pet bites life insurance lawyer Illinois employment lawyer Palatine traffic accidents motorcycle accident lawyer Schaumburg estate planning lawyer Illinois car accident attorney Barrington estate planning lawyer Detainer Actions traffic crimes Fourth of July owner responsibility Illinois DUI attorney health insurance dispute revenge porn Barrington injury attorney Crystal Lake medical malpractice lawyer special needs trust Palatine construction attorney car accident creditors Illinois business law atorneys Palatine civil attorney license Palatine traffic lawyer Illinois real estate lawyer unpaid overtime Deer Park traffic accident attorney Illinois employment attorneys Crystal Lake will lawyer Illinois boating accident lawyer Illinois workplace discrimination attorney Barrington business law firm

Archive