A living trust must be tactfully designed in order for it to fulfill your intentions. If mistakes are made, the benefits you hoped to provide after death will subside. Here are some things to look out for to avoid a hassle with your Living Trust.
You get what you pay for. While this is cliché, it is also true when it comes to Living Trusts. Trying to save money by writing a trust yourself from scratch or using an online template, or even going to the least expensive attorney you can find, can be very risky. Should your endeavors not work out, you have actually wasted money. Invest in the advice and work a trusted attorney that can guide you through the process that can be overwhelming. The time and expense are worth it when well-drafted documents and worthwhile insight are provided.
Don’t fall for Marketing Gimmicks. There are firms trying to mass market various types of trusts under names trademarked solely for marketing appeal. In order to determine if a trust is right for you, you need to discuss your needs and goals first. It should never be the other way around. No one should extol the benefits of any trust without knowing if it is suitable for you.
Do your part. While hiring a trusted attorney is important, you have some work to do as well. Once the document is written, you must carefully and thoroughly read through it. Ask your attorney for clarification if there are parts you do not understand. Your estate is valuable, and you should make sure that your plan is exactly what you want it to be.
Fund the trust. Assigning the trust as the beneficiary and changing titles is important, however you still have to fund it. You can have the fastest car in the world but without fuel, it will not run. The same is true of a trust. No matter how perceptively written your document is, it does not matter unless the trust has been funded. If this is not done, there could be strenuous processing done by the legal system after your death, which almost defeats the point of using a trust in the first place.
Choose wisely. You must designate a trustee that has your interests in mind for your Living Trust to work the way you intend. You do not have to choose just one successor trustee, you can name multiple, but they all have to agree to follow your instruction. For some people, assigning family member(s) is a good option but for others, it may not be. Maybe your family is trustworthy, but they could be too busy to deal with such important matters. In these cases, hiring a professional trustee is not a bad idea. A professional trustee also knows a lot more about the topic than a family member might and can assure that your funds are being allocated properly and consumed responsibly.
Stay up to date. Situations change over time, and it is important to amend your trust as necessary. Maybe you were married with two children when you wrote your original trust. In a few years, you could be divorced, or have another child, or maybe your children moved out and had children, so you are now a grandparent. In order to mirror your values, your trust must be updated as your family, job, or financial situations change. It is a good idea to plan certain times every year or two to review your trust and make necessary modifications.
Following these guidelines will help to avoid messes that could arise and make sure your Living Trust is carried out the way you envisioned. You are responsible for your estate planning and your family will appreciate a trust that is well devised and current.
