Pennsylvania Living Trust Funding Mistakes

Quick answer: the single most common mistake is signing the trust but never retitling real estate into it. An unfunded trust leaves those assets in full Pennsylvania probate, Johnson-guideline fees included — and none of this changes the inheritance tax owed. See what that would cost in the Pennsylvania probate vs living trust calculator.

1. Real estate never deeded into the trust

Pennsylvania real estate requires a new deed transferring the property from the individual owner's name into the trust's name, and that deed must be properly recorded with the county. A trust document alone, however carefully drafted, does not move title on its own — this is consistently the single biggest funding gap.

2. Financial accounts left titled individually

Bank and brokerage accounts need to be either retitled into the trust's name or given trust beneficiary designations. Accounts left in an individual's name pass outside the trust and typically land back in the probate estate.

3. Assets acquired after the trust was created

A trust only covers what's actually transferred into it. A new account, vehicle, or newly purchased property acquired after the trust was signed needs its own separate transfer — the trust doesn't automatically absorb future acquisitions.

4. Forgetting that inheritance tax follows the asset regardless

Funding mistakes — frequently asked questions