Correcting Incorrect or Incomplete Trust Funding and Trust Transfers

A Trust is “funded” when property is transferred into it by a “trust transfer”. Property  defectively  transferred to a Trust is not Trust Property, and the Trust does not own it or control its distribution.  For example, a residence listed in a Trust’s Schedule of Trust Property, but not transferred into the Trust by deed, is not governed by Trust provisions. The existing deed may govern its transfer, or when no Court recognized document controls distribution, it will be distributed in Probate by “intestate succession”.  Either way, this can lead to delay, expense, and unintended results. Depending upon the facts, defective transfers can be corrected in a special Probate Court proceeding known as a Heggstad Petition.   If you have one of these problems, contact us. In many cases we can go to Court to obtain a Judgment that corrects the problem and permits distribution of incompletely transferred property as Trust Property.

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