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

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

Archive