⚠️ The Trust Trap: Why Probate Still Happens Even With a Trust

Based on real responses from 150+ estate planning and probate professionals

👋 Hi, Sidhartha here.

I’m a philosopher, truth seeker, lawyer, and AI innovator.
Over the last 25 years, I’ve made bad decisions in almost every category: business, tax, estate planning, nonprofits, and real estate. I’ve seen clients go from testimonial pages to courtrooms and federal watchlists.

I’ve studied law in three countries, worked with 10,000+ people, and helped restructure over $5 billion in assets. Now, I’m on a mission — powered by AI — to help people see the truth behind the marketing.

🎯 The Goal:

To debunk myths and show what actually happens — according to case law, IRS code, and real-world professionals who’ve seen the damage play out in court.

🤯 The Myth: “If I Have a Trust, I Avoid Probate”

Many clients believe that creating a trust automatically avoids probate — but that’s only partially true.

In fact, we asked estate professionals why cases still end up in probate.
Here’s what they told us:

📊 Survey Results: Why Cases End Up in Probate Even With a Trust

From over 150 estate planning professionals:

• 34% – Clients didn’t want to pay for a trust or understand its value

• 20% – Unfunded trusts (no assets ever titled into the trust)

• 15% – Family didn’t understand estate planning before death

• 9% – Thought a will alone avoids probate

• 9% – Defective or DIY estate plans

• 3% – Trust-based plans deemed “unaffordable”

• Others: Outdated documents, incorrect TODs, deceased beneficiaries, unchallenged capacity

🔍 What This Means:

Even when clients create trusts, they often fail to:

• Transfer real estate into the trust (via deed)

• Retitle investment or bank accounts

• Update beneficiary designations

• Align insurance or business interests

• Keep the documents current or valid

The result? Assets stay in their name — and when they die, those assets go through probate. The trust is ignored or bypassed.

⚖️ The Rules Behind This:

• IRC §2036: If the grantor retains control over the trust or the asset wasn’t properly transferred, it’s includable in the estate.

• UPC §6-101: Non-probate transfers require valid title and execution

• State statutes: Most states treat improperly titled assets as probate property, even if a trust exists

• FTC enforcement: Promising “avoids probate” without explaining funding is potentially deceptive

📚 Real Case: Estate of Heggstad (California)

In this case, a decedent had a trust but failed to properly transfer real property into it. The court ruled the property did not pass through the trust and went into probate — an example now used in law schools and bar exams.

🧠 BENT Law™ Analysis

B – Business:
Unfunded trusts mean business interests remain exposed. Operating agreements not aligned with the trust lead to frozen operations.

E – Estate:
The trust is legally valid, but functionally useless. Probate court still takes over because assets aren’t titled correctly.

N – Nonprofit:
Charitable giving tools inside the trust never activate if the assets don’t flow through it.

T – Tax:
No benefit under IRC §642(c) or §2055 for charitable deductions; assets become fully taxable and visible to the IRS.

🔬 BENT Asset Risk Lens

B – Behavior:
Set up the trust, but didn’t follow through. Avoided professional funding review or misunderstood the process.

E – Entity:
Assets are still held in individual or joint name — not by the trust.

N – Numbers:
$1M+ estates still face $40K–$80K in probate fees and tax exposure, despite having a trust document.

T – Timing:
Client dies before funding or aligning assets. The plan fails when it matters most.

🧊 Above the Surface

“I set up a trust — I’m good.”

🌊 Below the Surface

• The trust was never funded

• Assets stayed in your personal name

• The court steps in anyway

• Family faces the same delays and costs as if there was no plan at all

🧾 Additional Reference Material:

• IRC §2036 – Retained Interest

• Estate of Heggstad, 16 Cal. App. 4th 943 (1993)

• Uniform Probate Code §6-101

• CA Probate Code §850 (Heggstad Petitions)

✅ Suggested Next Step: Get an Estate & Tax Structure Check

You may have a trust. But is it working?
We go beyond checking the document. We check the truth — with real law, not assumptions.

🎯 Comprehensive Estate & Tax Assessment – $1,000

Includes:

• ✅ Detailed trust funding review

• ✅ Probate and tax exposure analysis

• ✅ Title + entity coordination check

• ✅ Custom report with codes, risks, and action plan

• ✅ Referrals to licensed professionals or direct support if needed

🧠 Don't leave your family a trust that doesn’t work when it matters most.

👉 Purchase page coming soon