Funded Trusts

Funded trusts are legal arrangements where an individual (the settlor) creates a trust and provides it with assets, such as money or property, to be managed by a trustee. The trustee holds and manages these assets on behalf of beneficiaries, according to the trust’s terms. The funding aspect means the trust is initially supplied with assets at its creation or over time. Funded trusts are often used for estate planning, ensuring assets are managed and distributed smoothly, providing privacy, and potentially offering tax advantages. They differ from unfunded trusts, which are established without initial assets.