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Why do I need to "fund" my trust?

money for the house

You fund your trust for the same reason you deposit money into your bank account: so the trust holds your property. A trust without assets assigned to it is nothing more than a piece of paper. Assigning assets to your trust takes those assets out of your estate, generally putting them beyond the reach of the Probate Court.
It's important to understand that putting assets into a revocable living trust, a common estate planning tool, does not, by itself, protect those assets from creditors or from Medicaid "spend-down" requirements. These sorts of protections require more elaborate and carefully timed approaches to avoid being disqualified for Medicaid coverage, as well as to avoid running afoul of the Court for concealing assets.