When establishing a living trust, you must avoid making preventable mistakes that could jeopardize your trust from working as intended. If you establish a living trust, your loved ones can enjoy the benefits of avoiding the probate process. However, if you fail to properly prepare and fund your, your loved ones will be forced to undergo a costly probate process. Additionally, you risk having your estate distributed to the wrong beneficiaries. If you are considering creating a living trust, contact an adept Montgomery County Trust Attorney to help you avoid making mistakes. Please continue reading to learn about common mistakes people make when creating their living trust.
What errors should I steer clear of when making a living trust?
A living trust is an estate planning tool that an individual can create during their lifetime to protect their hard-earned assets and dictate how they want their assets distributed after their death. Despite the many benefits of establishing a trust, failing to execute it properly will prevent your trust from being invalidated. The following include but are not limited to common mistakes individuals make when creating a living trust:
- Not carefully choosing your successor trustees. If you name the wrong successor trustee, they may fail to follow the trust’s instructions and perform the required duties. This means your trust may not work in the way you intended. Therefore, to prevent this, you must choose your successor trustee carefully. When selecting an ideal candidate, it is vital to consider whether they are responsible enough to manage and distribute the assets from your living trust.
- Not modifying your trust document to reflect your current circumstances. Unfortunately, change is not something you can run from. Life is constantly changing, and when there are significant changes in circumstances, it should be reflected in your living trust. This is especially true in the event of a new birth, divorce, death, or change in financial standing.
- Not retaining a seasoned attorney. Many people make the mistake of hiring the cheapest attorney they can find or using online forms to create their trust. However, this is a huge mistake. If you do not retain an experienced attorney, your risk not having your legal documents prepared correctly. If your legal documents are not properly prepared, it can result in your trust not working in the way you intended or at all. To ensure you do not waste your time or money, hire a qualified Montgomery Country trust attorney to help you avoid making critical errors that could jeopardize your hard-earned assets.
If you avoid these mistakes, your trust can benefit you and your loved ones. If you are considering creating a living trust, contact a skilled attorney from the legal team at JDKatz today. Our firm is prepared to help you avoid making the above-listed mistakes to ensure your wishes are carried out correctly and as you intended.