Depending on what your intentions are, a living trust may be the most beneficial estate planning tool at your disposal. However, this is only if you create and establish it properly. It is far too often that an individual passes away and the family is left picking up the pieces after an estate plan is deemed invalid and unenforceable. Follow along to find out what mistakes you should avoid with your living trust and how a proficient Putnam County trusts attorney at the Law Office of Andres D. Gil, PLLC can lead you in the right direction.
What is considered a living trust in New York State?
Of note, a living trust is also known as a revocable trust. Nonetheless, this allows you, the grantor, to revoke the trust at any time. This is so you have the freedom to change your mind and make edits if your personal, familial, or financial circumstances undergo significant changes. And you may make such changes throughout your lifetime and up until the time of your death. Additional benefits that come with a living trust are as follows:
- You may continue to use your assets to your benefit during your lifetime or if you become incapacitated.
- You may have your successor trustee manage your assets, under your direction, during your lifetime.
- You may have your successor trustee distribute your assets to your designated beneficiaries once you have passed on.
- You may have your successor trustee continue to hold your assets for the benefit of your designated beneficiaries once you have passed on.
- You may have your designated beneficiaries avoid the probate process once you have passed on.
What mistakes should I avoid making with my living trust?
If you wish for you and your loved ones to reap the benefits of your living trust, then you must properly enforce it. With that being said, you should avoid making the following mistakes:
- You must not sign your living trust document until you fully understand all its clauses.
- You must not appoint a successor trustee that is untrustworthy or otherwise incapacitated.
- You must not forget to change titles and beneficiary designations to the name of your trust.
- You must not forget to update your living trust as you undergo significant life events.
- You must not forget to create and establish a pour-over will that will cover the assets outside of your living trust.
Overall, the biggest mistake that you may make is attempting to create and enforce your living trust without the proper legal counsel. This is because, while online do-it-yourself forms may seem more convenient and straightforward, they may leave you more prone to making oversights that make your living trust invalid and unenforceable in New York State. So please do yourself the favor and retain the services of a talented Putnam County estate planning attorney at the Law Office of Andres D. Gil, PLLC today.