Common Mistakes When Drafting A Trust
Trusts are legal documents created by individuals during their lifetime. The purpose of a trust is to protect a person’s property and ensure it is distributed according to their wishes upon their death. The person who creates a trust is known as the grantor and the people who benefit from the trust are known as beneficiaries. Trusts also name a trustee who manages the trust. The grantor typically acts as the trustee during their lifetime and they name a successor trustee who will manage the trust after their death.
Establishing a trust can be complicated and even the smallest mistake can make things more difficult for your family after you pass away. Below, our wills and trusts lawyer in Daytona Beach outlines some of the most common mistakes made, and how to avoid them.
Not Showing Intent to Create the Trust
Property rights are taken very seriously in Florida and due to this, you must clearly show your intention to create the trust. This means showing that you intend to retitle assets to the trust and eventually, to the beneficiaries. The intention must be very specific. Without showing this intention, it can be easier to contest the trust in the future and the court may void it altogether.
Failing to Fund the Trust Sufficiently
The main purpose of a trust is to hold assets and this means you must fund the trust. Funding the trust requires you to transfer property from your name into the name of the trust. If you do not fund the trust sufficiently, the assets outside of the trust must go through probate. Funding the trust legally changes ownership of the asset and protects the property from going through the probate process.
Failing to Use Specific Terms
One reason it is so important to work with an attorney when establishing a trust is to ensure it includes the proper language. A lawyer will know what language to include, and what to avoid. The courts in Florida generally do not accept terms such as ‘request’ or ‘hope’ when enforcing a trust. The language you use should be specific and clear, and a lawyer will know how to ensure it is.
Failing to Name Beneficiaries
The main purpose of a trust is to ensure property will be transferred to your loved ones after you pass away. Clearly indicate your intended beneficiaries by using their full name in the trust. Again, if you use language such as ‘my children,’ this is not specific enough and your loved ones may have to resolve disputes during litigation. For example, there may be a dispute between biological children and adopted children or stepchildren.
Our Wills and Trusts Lawyer in Daytona Beach Can Help You Avoid Mistakes
There are many common mistakes people make when establishing a trust. The best way to avoid them is to work with our Daytona Beach wills and trusts lawyer at Bundza & Rodriguez when drafting yours. Call us today at 386-252-5170 or chat with us online to schedule a consultation and to get the legal help you need.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html
