A properly prepared and fully funded living trust can be essential to your estate plan. However, to embrace the benefits, you must avoid errors that could hamper your estate planning objectives or invalidate the trust altogether. Unfortunately, many people make mistakes that prevent their trust from working as intended. Please continue reading to learn the most common mistakes to avoid while writing a living trust in Maryland and how a knowledgeable Montgomery County Trust Attorney can help guide you through these complex matters.
What Are the Most Common Mistakes with Living Trusts?
In today’s economy, many people attempt to save money by using do-it-yourself (DIY) forms or enlisting the services of attorneys with the lowest price to establish a living trust. However, this could lead to having an improperly drafted trust document. If these legal documents are not adequately prepared, your trust may not work as you intended, or you could be left without a valid plan. A trust must meet specific legal requirements to be enforceable. Therefore, it’s in your best interest to enlist the services of an experienced Montgomery County trust attorney who can guide you through each step and ensure the document meets your specific needs.
Another common mistake individuals make when creating a living trust is failing to transfer assets to the trust properly. Individuals sometimes fail to finish the funding process, meaning certain assets go through probate. This is a significant issue, as avoiding probate is one of the primary reasons for establishing a living trust in the first place. If you have a living trust, you must ensure it is fully funded to function as intended. The living trust can only control the assets you place in the trust.
Furthermore, many people fail to designate a successor trustee. Even if you properly prepare and fully fund the trust, it may not work as intended if you name the wrong successor trustee. The successor trustee you appoint must follow the trust’s instructions and perform their duties as required. If you appoint someone who can’t carry out these responsibilities, your living trust will be at risk. As such, you must carefully consider your candidates to ensure your trust will work properly.
As you can see, there are various mistakes individuals can make when establishing a living trust. At JD Katz, we understand how complex these matters can be. If you plan to create a living trust, please don’t hesitate to contact a determined Montgomery County trust attorney, who can help ensure you meet your estate planning objectives. Allow our firm to assist you in protecting your future.