Nobody likes to think about the end of their life, but it is inescapable and should be planned for accordingly. When devising your trust, here are some key things to avoid:

Trusting the state to take charge
Having a will is not enough. A will can designate who should receive what after your death but it is subject to the public probate process. You can avoid probate with a revocable trust. This will secure your privacy and that of your beneficiaries. The probate process in most jurisdictions is not as costly nor as onerous as some would have you believe.

Sense of completion
Many people get the sense that they are done when all their paperwork is drawn up, but this is not true. Yes, the creation and signage of the trust document is important, but it will not do any good if the trust is not funded. Beyond this, assets covered by the trust must be retitled in the name of the trust.

A “pour-over” will is also beneficial to set up. It moves assets into the revocable trust upon your death so that they can be distributed to your Trustee.

Forgetting about change
Families are a dynamic structure. So are politics and laws. For this reason, it is crucial to revisit your trust every once in a while and make necessary changes. For example, you might want to update your beneficiary designations. Maybe you bought some property, and that new asset needs to be included in your trust. Or maybe you forgot to include your life insurance policy in the original draft. Your trust will not update itself, it requires work. You need to take initiative in varying situations to make sure your trust is in congruence with your life changes.

Disregarding your other assets
Some assets, such as retirement accounts and insurance policies, do not automatically follow what your trust says. Instead, they go to the beneficiary that you designated when you opened the account. If you forget to update this, your assets might not go to the right people. Therefore, updating your beneficiary forms for certain assets is just as important as updating the trust itself.

Drafting it yourself
Some things are better left to an expert. That is not to say that you are not capable but your life would be easier and more money would be saved if you hire a professional to help you draft your trust. There are many details that get overlooked if you are not fully aware of what you are doing. Paying for the assistance might seem expensive up front but, as mentioned earlier, the probate court process is quite costly. Doing things right in the first place and making sure everything is included will save money in the long run.

Early distribution
It is not always good to give young adults an inheritance outright at an early age. While we all hope they are responsible enough, the truth is, many are not actually conscientious enough to receive a decent chunk of money. It might be good to allocate different amounts to your beneficiaries at different ages, designating larger portions for older ages.

Treating beneficiaries in different circumstances the same
It is important to take different situations into account when devising your trust. Some of your beneficiaries might require more help than others. Funds can be allocated according to greater need. It is especially important to take extra consideration for those with disabilities because distributing more assets to a special needs beneficiary could actually count against them in terms of social security income.

Designating the wrong trustee for the right reasons
It might seem easy and practical to designate a close family member as your trustee, but this can cause problems. Your designated trustee might not agree with all your allocations or might not feel comfortable being in a position of authority over the trust. It is possible to hire an unbiased third party trustee who would be beneficial in helping to maintain tranquility within your family.

There will always be bumps in the road, but thorough planning and professional help in devising your trust can make the one life you have a lot easier.

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Rice Law Group specializes in every aspect of estate planning. Work with a New York estate planning attorney who specializes in helping individuals plan for the future. Call us at (212) 944-1180 or fill out our contact form online.