Many Boca Raton residents sign a beautiful revocable living trust, file it in a drawer, and assume the work is done. It is not. An unfunded trust is one of the most common reasons estate plans fail in Florida. Below we answer the questions clients ask most.
What does “funding” a trust actually mean?
Funding means retitling assets into the name of your trust (or naming the trust as beneficiary) so the trust legally controls them. Under Florida’s revocable trust statutes (Chapter 736), a trust only governs property it actually holds. If the deed to your home east of Federal Highway still says your individual name, that home does not pass through the trust, and it may end up in probate anyway.
Which assets should go into the trust?
Common items Boca Raton clients transfer include real estate, non-retirement brokerage accounts, bank accounts, business interests, and valuable personal property. Funding is usually done by signing a new deed for real estate, completing transfer forms for financial accounts, or updating account titling to read, for example, “Jane Smith, Trustee of the Jane Smith Revocable Trust.”
What about my Boca Raton homestead?
Florida homestead is special. Article X, Section 4 of the Florida Constitution gives your primary residence strong creditor protection and restrictions on how it can be devised if you have a spouse or minor child. You can place homestead in a revocable trust without losing the homestead tax exemption or creditor protection in most cases, but the deed must be drafted carefully. Some homeowners instead use a Lady Bird (enhanced life estate) deed to keep the home out of probate while preserving homestead benefits. Which approach fits depends on your family situation, so this is worth discussing with an attorney before signing anything.
Should I put retirement accounts in the trust?
Generally no. Retitling an IRA or 401(k) into a trust can trigger immediate income tax. Instead, you typically keep these in your own name and review the beneficiary designations. A trust can sometimes be named as a beneficiary, but the tax rules are intricate, so coordinate this with your advisor rather than guessing.
What if I forget to fund something?
This is exactly why a properly drafted plan pairs the trust with a pour-over will. The pour-over will acts as a safety net, directing any forgotten asset into your trust after death. The catch is that assets caught only by the pour-over will may still have to pass through probate first, which is the very thing you were trying to avoid. So the safety net is a backup, not a substitute for diligent funding.
How do I keep my trust funded over time?
Funding is not a one-time event. When you open a new account, buy a Palm Beach County condo, or sell your home, you need to keep titling consistent with your plan. A simple habit helps: every time you acquire a significant asset, ask whether it should be titled in the trust or have a beneficiary designation. Reviewing your funding every few years prevents gaps from creeping in.
The bottom line
A living trust is only as effective as its funding. In Boca Raton, careful attention to homestead, retirement accounts, and consistent retitling makes the difference between a plan that works and one that quietly fails.
This article is general information about Florida law and not legal advice. Funding decisions depend on your specific assets and family. Consult a licensed Florida estate planning attorney before retitling any property.
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For more on our Florida practice, see our overview of powers of attorney in Florida. Morgan Legal Group's affiliated New York office also handles .
