What happens if I forget to put an asset in the trust?

One of the steps that you must take after setting up a trust is actually getting your assets into the name of the trust. (Assets are bank accounts, houses, etc.) The process for doing that depends on the type of asset. But what happens if you forget? Or you didn’t do it before you die?

As always, it depends. But the short answer is that there is likely some form of probate proceeding that will need to take place. (A reminder: this is not legal advice.)

There are two assumptions that I make in the following scenarios: 1) there is no beneficiary listed on that particular asset that is not in the trust; 2) the total value of all assets not in the trust is more than $184,500.

Here are some common scenarios:

Scenario 1: The asset is listed on the Schedule of assets that’s attached to your trust. (As in, you told your attorney about it when you set up the trust). In that case, your attorney can possibly file a Heggstad petition with the probate court. This tells the court that it was your intention that asset go into the trust. This doesn’t work for everything, but in the circumstances it does, it involves about 6-9 months plus court fees.

Scenario 2: The asset(s) are not in your schedule or listed in your trust. Then we would again ask: Is there a beneficiary? What is the total value of the asset(s) that are not in the trust?  Assuming that there is no beneficiary and the total value of all assets not in the trust are over $184,500, then we would have to go through a full probate proceeding for the assets not in the trust. This is about 18-24 months plus court fees.

In other words: just having the trust is not enough. You have to make sure your assets are actually in the trust! If you don’t know how to do that or have any questions, please contact me.