A trust document may be an effective estate planning tool. That is, it may protect your assets until the time comes for them to be inherited by your desired beneficiaries. All the while, it may allow your assets to avoid undergoing what is usually considered the excruciating probate process. However, your trust may only hold this power and exude these benefits if you do not make any mistakes when creating or establishing it. Without further ado, follow along to find out what errors you should avoid making with your trust and how a proficient Putnam County trusts attorney at the Law Office of Andres D. Gil, PLLC can help you know how to dodge them.

What errors should I avoid making with my trust?

One of the most critical errors you must avoid is appointing the wrong successor trustee for your trust. This is because your trustee holds the serious responsibility of managing your trust’s assets and administering them to your desired beneficiaries when the time comes. So, an unfit person for this role may jeopardize your beneficiaries’ inheritances. This is to say that you should avoid appointing a trustee who possesses any of the following characteristics:

  • Your appointed trustee should not be someone who struggles with responsibly managing their personal finances.
  • Your appointed trustee should not be someone who is flaky when making commitments or who is otherwise untrustworthy.
  • Your appointed trustee should not be someone who has a conflict of interest or emotional strain with your desired beneficiaries.

Another error that is important to avoid is neglecting to keep your revocable trust’s terms and conditions up-to-date after undergoing significant life changes. Below are examples of life events that may constitute an update:

  • You get a divorce, get remarried, have more children, or welcome grandchildren and thereby require changes to your beneficiary designations.
  • You learn that your appointed successor trustee has sadly passed on or otherwise becomes unable or unwilling to fulfill their duty.
  • You learn that there have been changes to federal or state laws regarding estate taxes that no longer align with your plan.

What is another common mistake I should dodge?

It should go without saying that using an online tool to create and establish your trust may not be the best idea. This is because this process may grow rather complex rather quickly, and you do not want to sign anything that you do not fully understand. In conclusion, there is arguably nothing more assuring than to have legal guidance every step of the way.

The time to act is now. So please pick up the phone and call a talented Putnam County estate planning attorney at the Law Office of Andres D. Gil, PLLC. We look forward to hearing from you.