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Many people believe that creating a trust automatically keeps their estate out of probate. Unfortunately, that’s only part of the story. A trust only works if your assets are correctly titled or coordinated to it — a process we call asset alignment. Without it, your trust could fail to protect your family in the way you expect.
At Family Estate Planning Law Group, asset alignment isn’t an afterthought. It’s the foundation of our planning process.
What Is Asset Alignment?
Asset alignment is the process of making sure your real estate, bank accounts, investments, life insurance, and other assets are either owned by your trust or properly coordinated to flow into it. Without alignment, those assets could still end up in probate — no matter how carefully your trust is written.
Why Asset Alignment Is the Key to What You Really Want
When most people start estate planning, they have goals like:
- “I want to make things easier for my family.”
- “I want to keep things private.”
- “I want to avoid unnecessary costs and delays.”
- “I want to make sure my wishes are followed.”
- “I want to protect my loved ones from stress during a hard time.”
- “I want to save taxes”
At FEPLG, we often explain it like this: your trust is a bucket. It’s designed to hold and protect everything you’ve worked for. But here’s the catch — if you don’t put your assets into the bucket (or at least make sure they flow into it when needed), your trust can’t do its job.
Asset alignment is the process of filling your bucket. It means:
- Titling your accounts and property in the name of your trust
- Updating beneficiary designations so assets flow into the trust at the right time
- Making sure new assets you acquire also make it into the bucket
When your bucket is full and properly maintained:
- It’s easier for your family — no court delays, no endless forms
- Privacy is preserved — assets in the bucket don’t go through public probate
- Costs stay lower — avoiding probate saves time and money
- Funds are available quickly — your trustee can use them right away
- Your wishes are honored — no stray accounts or outdated beneficiaries sending assets somewhere unintended
- Taxes are saved — assets flow into the tax saving vehicles created in your trust
At the end of the day, asset alignment is how you make sure your “bucket” is full and ready when your family needs it most.
Why Probate Still Happens Without Alignment
If an asset is not titled to your trust and doesn’t have updated beneficiary instructions, it won’t automatically transfer into the trust when you pass away. That means:
- Delays in your loved ones accessing funds
- Added legal fees and court costs
- Potential disputes among beneficiaries
- Loss of privacy, since probate is a public process
- Assets could pass to young children without safeguards or oversight
- Assets could end up with unintended beneficiaries
Two Real-World Examples
The Martins – Planned with Asset Alignment ($7 million estate)
The Martins had a $7 million estate made up of a primary home, vacation property, retirement accounts, brokerage accounts, and life insurance. When they created their trust, they worked with FEPLG to align every asset.
- Real estate was retitled in the trust’s name
- Bank and investment accounts listed the trust as owner or beneficiary
- Life insurance policies were updated so the trust, not individuals, is the beneficiary.
- Business interests were transferred appropriately
When Mr. Martin passed away, all assets were already connected to the trust. The family avoided probate entirely, maintained privacy, and had immediate access to funds. The trust instructions were carried out exactly as planned, making the transition smooth and stress-free.
The Greens – Trust Without Asset Alignment ($6 million estate)
The Greens also created a trust for their $6 million estate, but they never moved their assets into it.
- Vacation home remained titled in their individual names
- Investment accounts had outdated or missing beneficiaries
- Life insurance listed an old beneficiary from years prior
When Mrs. Green passed away, the trust couldn’t control several key assets. The vacation home and certain accounts went through probate, taking over a year and costing tens of thousands in legal fees. Life insurance and retirement accounts passed directly to the children, leaving large sums in the hands of teenagers. One older policy, purchased before their youngest was born, went to some but not all of the children.
The family faced long delays, public court proceedings, emotional strain, and the painful reality that some assets ended up with unintended beneficiaries.
The FEPLG Difference
Our team doesn’t just prepare your trust and hand you a binder. We:
- Review your assets in detail
- Work directly with your financial institutions to retitle and update accounts
- Coordinate with your advisors to ensure every part of your plan works together
- Keep your plan up to date as life changes through our Client Care Program, Generations
Planning with Confidence
A trust is an important tool, but it’s only the first step. Without asset alignment, your loved ones could still face the very challenges you were trying to avoid.
If you already have a trust, it’s not too late to get your assets aligned. And if you’re just starting your planning, building alignment in from the beginning will ensure your wishes are carried out smoothly.
Ready to make sure your plan truly protects your family?
Contact Family Estate Planning Law Group to learn how our relationship-based process keeps your plan working — today and for generations to come.
