Creating a trust is a great way to ensure that any property placed in the trust goes to benefit the named party according to the set terms. Furthermore, living trust has numerous benefits including the fact that your beneficiaries do not have to go through the probate process. While a living trust is simple and straightforward, some mistakes can make it invalid and even interfere with the transfer of property.
Here are some common mistakes you may want to avoid.
Having a poorly drafted document
A lot of people rush to create their trust online, going for do it yourself forms or even hiring the cheapest attorney. If the documents have not been properly drafted, you could end up wasting both your money and time. Additionally, the trust created may end up not fulfilling its purpose.
McCullough & Sparks says the best course of action is to hire an experienced Utah estate planning attorney who can give you valuable counsel as well as provide you with properly created documents that are valid. Finding the right lawyer may take you time, but it will pay off in the end.
Failure to read the trust document
Signing on papers you have no clue about is a costly mistake. If you find some parts difficult to understand, it’s best to consult your attorney who will gladly explain them to you.
Failure to fund the trust
A living trust only controls the amount of assets you include into it. You can have properly written documents with all the instructions but if you fail to fund it, it won’t be able to control anything.
In some cases, people don’t finish funding the trust and this led to your assets going through probate which is an expensive and time-consuming process. Remember that one of the reasons for having a trust is to avoid probate. Have your trust fully funded to avoid these issues in future.
Naming the wrong trustee
Having a fully funded living trust that has been well-written may not work if the trustee doesn’t follow the duties or instructions stipulated in the trust. While most people name their children as trustees, it’s essential to consider all your candidates carefully.
Check to see the personality and ability of your preferred candidate and choose wisely.
Living trusts are an excellent option for people looking for a simple way to transfer their assets to their beneficiaries. Avoiding the above-stated mistakes can only be done by consulting an estate planning attorney who will guide you through the process of creating the trust and funding it.