Unfunded Trusts

An unfunded trust is a legal arrangement where assets are intended to be transferred to a trust but have not yet been contributed or officially transferred into it. Think of it as a plan or blueprint—it's set up with instructions for future assets but remains empty until assets are added. This can happen if the trust is created in advance to hold property later, or if funding is delayed due to ongoing transactions or planning. Essentially, it’s a trust that exists on paper but hasn't yet received the assets it’s meant to hold.