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Q.Can a Living Trust distribute of all of my property upon my death?
A.Not necessarily. A revocable living trust can only distribute assets and property that were properly transferred into the trust during the lifetime of the trust’s creator (the Settlor).
If the person who created the trust (the "Settlor") forgot to transfer an asset into the trust or failed to transfer an asset properly into the trust, that asset will NOT be distributed by the trust after death and may have to be probated.
There is an exception… if the trust was prepared with a pour-over will directing that any property mistakenly left out of the trust be placed into the trust, then the Will may enable such assets to be distributed pursuant to the terms of the trust.
While there are many companies that offer to prepare a trust for a minimal fee most, if not all of them, do NOT transfer any of your assets into the trust. They leave that up to you. Such companies also in the small print urge you to seek the advice of a local attorney. We strongly advise against using such services.
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