Quick Summary: A trust avoids probate only if your assets are properly transferred into it. When real estate, bank accounts, or other assets remain outside the trust, they are still subject to probate—even if you signed a beautifully drafted trust document. An unfunded or partially funded trust is one of the most common (and costly) estate planning mistakes in Arizona. At Hopkins Law, PLLC in Wickenburg, we focus on preventing future disputes through clear, thorough planning—including full trust funding guidance.

What Is Trust Funding?

“Funding” a trust simply means transferring ownership of your assets from yourself as an individual to yourself as trustee of your trust. The trust only controls the assets that are actually placed into it. Think of the trust document as an empty container—it does nothing until you fill it.

Proper trust funding ensures:

• Your estate avoids probate
• Your successor trustee can manage affairs without court involvement
• Assets pass smoothly to beneficiaries
• You minimize risk of disputes or challenges later

Without funding, a trust is a well-written plan that can’t be executed.

How an Unfunded Trust Leads to Probate in Arizona

In Arizona, probate is required when assets exceed certain value thresholds and are still titled in a person’s individual name at death. If your trust owns nothing—or only some things—your loved ones may be forced into probate despite the existence of a trust.

Common probate-triggering situations include:

• A home still titled in the individual’s name
• Bank accounts without a trust or beneficiary designation
• Vehicles not transferred to the trust or into beneficiary form
• A recently acquired asset that was never titled in the trust

At Hopkins Law, PLLC, we see this frequently—people believe they “took care of everything,” but because a key asset was never transferred, the family ends up in court.

Real-Life Examples of Trust Funding

1. Bank Accounts

Bank accounts must either be retitled in the name of the trust or have a Pay-on-Death (POD) beneficiary. If not, the bank may freeze the accounts, and your family may face probate before they can access needed funds.

2. Real Estate

Your home and any other Arizona real estate must be deeded into the trust. A failure to update title is one of the top reasons families land in probate. Our firm regularly prepares and records these deeds to ensure the trust owns the property correctly.

3. Vehicles

In Arizona, vehicles can be transferred into a trust or set up with a beneficiary designation through the MVD. An unfunded vehicle may not trigger full probate alone, but combined with other assets, it often does.

4. Retirement Accounts & Insurance Policies

These assets usually pass through beneficiary designations—not trust ownership. It’s crucial to ensure your designations align with your trust plan and do not unintentionally cause tax or inheritance complications.

Why Proper Funding Prevents Disputes

Unfunded or partially funded trusts create confusion, delay, and opportunity for conflict. Beneficiaries may disagree about who should inherit a particular asset or how it should be handled, and creditors may assert claims in probate court.

At Hopkins Law, PLLC, we emphasize thorough planning and clear communication so families avoid unnecessary legal battles and costly court involvement.

How Hopkins Law, PLLC Helps

Our firm provides full trust funding guidance as part of our estate planning process, including:

• Preparing and recording trust deeds for Arizona real estate
• Helping clients coordinate beneficiary designations
• Advising on bank account retitling and documentation
• Identifying assets that require special handling (business interests, mineral rights, firearms, etc.)

Your trust is only as strong as its funding. We ensure nothing is overlooked.

Next Steps

You can learn more about how trusts work here:
Trusts at Hopkins Law, PLLC

For a broader overview of estate planning options in Arizona, visit:
Estate Planning Services

If you’d like help reviewing or updating your trust to ensure it is fully funded, schedule a consultation:
Contact Hopkins Law, PLLC

Proper trust funding today protects your loved ones tomorrow—and ensures the plan you intended actually works.