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

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

Archive