Signing a revocable living trust is only part of the process. On its own, a signed trust document doesn’t protect anything. Before it can work the way it’s supposed to, you have to complete a second step called trust funding: transferring ownership of your assets from your individual name into the name of your trust.
Why This Step Matters
A trust only controls the assets that are actually titled in its name. If your home, accounts, and other property are still in your individual name when you die or become incapacitated, the trust has nothing to manage.
Avoiding probate. The Rhode Island Probate Court only has jurisdiction over assets owned in your individual name at death. Assets properly retitled into your trust bypass probate entirely, which is usually the main reason people set up a trust in the first place.
Managing incapacity. If you become unable to manage your own finances, your successor trustee can step in and take over immediately, but only for assets the trust actually owns. Anything still in your individual name is off-limits to them without a separate legal process.
The pour-over will isn’t a substitute. Most trust-based estate plans include a backup “pour-over” will that catches anything left out of the trust and directs it there at death. That sounds like a safety net, but any assets passing through the pour-over will still have to go through probate first. It’s a backstop for mistakes, not a way to skip funding.
If you’ve set up a trust, or you’re planning to, and want help making sure it’s actually funded correctly, schedule a call to go through what needs to move and how.