Funding a Utah Trust
How to Make Sure Your Trust Actually Works
Many families are surprised to learn that creating a trust is only part of the process. A trust does not automatically control assets just because it exists.
Funding a trust is the step that connects assets to the trust so the plan works as intended. This page explains what funding means in Utah, which assets are typically involved, and why incomplete funding is a common reason trusts fail.
Why this Matters
Trusts are designed to reduce court involvement and create smoother transitions. When assets are not properly connected to the trust, those benefits may be lost.
Many Utah families assume their attorney “handled the funding.” In reality, funding often requires follow-through over time. When that step is missed, probate can still be required—even with a well-drafted trust.
What “Funding a Trust” Means
Funding a trust means changing how assets are owned or designated so the trust, not an individual, controls them at death or incapacity.
Funding may involve:
- Deeding real estate into the trust
- Updating account titles
- Assigning business interests
- Listing personal property
- Updating beneficiary designations where appropriate
A trust that is not funded is like a suitcase with no belongings. The container exists, but nothing is inside.
How Trust Funding Works in Utah
In Utah, whether an asset avoids probate depends largely on how it is titled or designated, not on whether a trust exists.
Under Utah probate law, assets owned in an individual’s name alone are typically subject to probate. Assets owned by a trust generally are not. This distinction makes funding critical.
Many Utah families assume funding is “one and done.” In practice, it is an ongoing process tied to life changes.
Assets That Are Typically Funded Into a Trust
Real Estate
Common examples include:
- Primary residences
- Cabins
- Out-of-state real estate (to avoid ancillary probate)
Title often reflects the trustee’s role, such as:
“[Name], Trustee of the [Trust Name], dated [date].”
Bank Accounts
Examples include:
- Checking and savings accounts
- CDs
- Money market accounts
Accounts remain usable for daily life after retitling.
Investment Accounts
This may include:
- Brokerage accounts
- Mutual funds
- Taxable investment portfolios
Business Interests
Funding may involve:
- Assigning LLC membership interests
- Updating operating agreements
- Coordinating with state filings if required
Who This Matters Most For
Trust funding matters most for people who assume the paperwork alone completed the plan, including:
- Homeowners with property titled in their individual name
- Families who recently created a trust
- Trustees responsible for administering assets after death
- Individuals who refinance, move, or acquire new property
- Business owners or LLC members
- Anyone who wants to actually avoid probate
A trust that isn’t properly funded is often discovered only after death or incapacity—when fixing it is slower, more expensive, and sometimes impossible.
How Things Play Out
The One Where the Trust Didn’t Own the House
Homeowners — Unfunded Trust
Situation: A Utah couple created a comprehensive revocable trust and assumed their planning was complete.
Problem: Their home was never deeded into the trust, even though the trust document existed.
Outcome: After death, probate was required to transfer the property.
Lesson: Trust documents alone do not avoid probate. Assets must be properly titled.
The One Where the Beneficiaries Were Aligned
Parents of Minor Children — Retirement Accounts Coordinated
Situation: Parents named a spouse as primary beneficiary and the trust as contingent beneficiary on retirement accounts.
Problem: Without coordination, retirement assets can bypass the trust or create gaps for minor children.
Outcome: When both parents passed, the funds flowed into the trust and were managed for the children according to the plan.
Lesson: Beneficiary coordination matters just as much as drafting the trust itself.
The One Where the Business Kept Running
Business Owner — LLC Interests Properly Assigned
Situation: A business owner assigned LLC membership interests to a revocable trust during life.
Problem: Business interests often stall when ownership is unclear at death.
Outcome: After death, the successor trustee stepped in immediately, without court involvement or operational disruption.
Lesson: Business interests require intentional funding steps to ensure continuity.
How Trust Funding Fits Into a Complete Estate Plan
Trust funding works alongside:
- Trust administration
- Beneficiary designations
- Powers of attorney
- Business succession planning
Partial funding often leads to partial results. Coordinated funding helps ensure the plan operates as a system rather than a collection of documents.
Common Questions
Whether a trust works depends on how well assets are connected to it.
The right plan depends on your family, assets, and goals. If you’re exploring your options, our team can walk you through what these concepts mean for a typical Utah family.
This page offers general educational information about Utah estate planning. It is not legal advice, and any examples described are hypothetical illustrations, not real clients or situations.