How Do You Properly Fund a Trust in Illinois?

 Posted on February 10, 2026 in Estate Planning

Properly funding a trust in Illinois means transferring ownership of your assets into the trust so the trust controls them instead of you personally. If a trust is not funded, it may not work the way you intended. That could mean your loved ones still have to go through probate, which is the court process used to distribute property after someone dies.

If you are reviewing your estate plan in 2026, it is important to confirm that your trust is fully funded. A DuPage County, IL estate planning lawyer can help ensure your assets are transferred correctly so your plan protects your family.

What Does It Mean To Fund a Trust?

Funding a trust simply means changing ownership of your assets so they belong to the trust. A trust is a legal arrangement where one person manages property for the benefit of another.

The trustee is the person who manages the trust. The beneficiaries are the people who receive the assets.

If you create a trust but never transfer assets into it, the trust may have no authority over those items. This is one of the most common estate planning mistakes.

Why Is Funding a Trust So Important?

Signing trust documents is only the first step. The trust must actually own your assets to control what happens to them.

Proper funding can help:

• Keep assets out of probate
• Speed up the transfer of property
• Maintain privacy for your estate
• Reduce stress for loved ones
• Limit confusion after your death

Without funding, these benefits may not apply.

What Illinois Laws Affect Trust Funding?

Trusts in Illinois are governed in part by the Illinois Trust Code, which explains how trusts are created and recognized under state law. Property transfers must also follow Illinois rules. For example, real estate is typically transferred into a trust using a new deed. Under 765 ILCS 5/28, a deed must meet certain legal standards to be valid. Even small mistakes in paperwork can create problems later.

Which Assets Should Be Placed Into a Trust?

Many types of property can be transferred into a trust. Doing so helps ensure those assets are managed according to your wishes.

Common assets to consider include:

• Real estate, including your primary home
• Bank accounts
• Investment accounts
• Business interests
• Valuable personal property
• Non-retirement financial accounts

Some assets, such as retirement accounts, are usually handled through beneficiary designations instead of being retitled. A beneficiary designation names the person who will receive the asset after your death.

How Do You Transfer Assets Into a Trust?

The exact steps depend on the type of asset. Real estate usually requires preparing and recording a new deed that lists the trust as the owner.

Financial accounts often involve contacting the bank or brokerage firm and completing a change of ownership form. The institution may have its own process, so it is important to follow its instructions carefully.

Personal property can sometimes be transferred using a document called an assignment of property. This document states that ownership is being moved into the trust.

What Happens if You Forget To Fund Your Trust?

If assets are left outside the trust, they may have to go through probate. Probate can take time and may involve court costs. In some cases, an estate plan includes a pour-over will. A pour-over will directs assets into the trust after death. However, those assets must still pass through probate first, which can delay distribution. Reviewing your trust regularly can help prevent these issues.

Should You Work With an Estate Planning Lawyer?

Funding a trust involves legal and financial steps, and mistakes can be costly. Working with a lawyer can help ensure documents are prepared correctly and assets are transferred without gaps.

An attorney can also review your full estate plan and identify items that may have been overlooked. Local guidance is especially helpful because Illinois property laws and recording requirements must be followed carefully.

Schedule a Free Consultation With Our Wheaton, IL Estate Planning Attorney

At The McCormick Law Firm, LLC, you will work with an attorney who makes complex topics easier to understand. We offer discounts for military personnel, veterans, and first responders. Call 630-517-8570 today to speak with a DuPage County, IL estate planning lawyer and take the next step in protecting your legacy. Taking the time to set things up properly today can help your loved ones avoid unnecessary complications later.