A trust can be a powerful tool in estate planning law in Gilbert, AZ because it allows assets to be transferred under specific conditions. While a trust can provide numerous benefits, if any of the below mistakes are made, it can make impossible the act of providing the intended protections and advantages. Visit the website and read on for a list of the most common mistakes made during the estate planning process.
Failing to Fund the Trust
Once a set of trust documents has been created, funding is vital to ensure that the trust has something to control and manage. Without funding, the trust is basically useless as there are no assets to handle and anything intended for the trust (but not transferred) will be forced through probate.
Not Offering Specific Instructions
It is not enough for the trust to have assets; it must also have directions for the handling of those assets over the years. In simple terms, the person creating the trust should provide directions on when and how the trust’s assets are to be distributed or invested. Without such details, the trust confers questionable legal responsibilities.
Not Identifying Beneficiaries
Assets are held in trust for later distribution to certain beneficiaries. If no beneficiaries are named, the trust’s legal validity is called into question. An estate planning attorney will help the client ensure that beneficiaries are named.
Choosing the Wrong Trustee
The person overseeing the trust (the trustee) should be a person who is responsible, organized and trustworthy. Choosing incorrectly can result in trust mismanagement. While this may cause issues for beneficiaries, it can also leave a trustee vulnerable to litigation if they breach their fiduciary duties.
Not Updating the Trust as Necessary
This is sometimes called “set and forget”, and it happens frequently. Failure to revise a trust as life circumstances change can lead to one or more of the above issues, which can mean that the trust does not provide the benefits and protections intended by the grantor.
estate planning law in Gilbert, AZ is not a glamorous subject, and most people do not like to think about it because it forces them to face their own mortality. However, if a client needs help creating a trust or resolving other estate planning issues, the law firm of Janet R. Feeley, L.L.C. is ready to provide professional, competent legal services.
