Mistakes To Avoid When Creating A Trust
Revocable trusts are legal documents created by an individual, known as the grantor, during their lifetime to protect their property and outline how it is to be distributed upon their death. Trusts also name beneficiaries and these individuals receive the property within the trust upon the grantor’s death. When a trust is established, a trustee is also appointed to manage the trust and distribute the assets within it when necessary.
Creating a trust is a complicated matter and even the smallest mistake could make things even more difficult after you pass away. Below, our Daytona Beach trusts lawyer outlines how to avoid some of the most common mistakes made.
Not Showing Intent to Create the Trust
Property rights are taken very seriously by the Florida courts and so, it is important to clearly show your intent to create a trust. The intention must establish that you want to relinquish control of the property to the trust and potentially even to someone else, such as a trustee. Generally speaking, grantors control the assets within a trust during their lifetime while also retaining the right to revoke the trust at any time. If your intent to create the trust is not clear, the court may void it or family members may contest it.
Not Being Specific
Generally speaking, the courts in Florida will not consider terms such as ‘request’, ‘hope’, or ‘desire’ sufficient enough to uphold a trust. This type of language is too vague and can even result in litigation. To avoid this, it is critical that you use language that is very specific and clear. There cannot be any doubt about your wishes. To avoid using vague language, it is important to work with an attorney. Attorneys will know the exact language to use to avoid this mistake and ensure that your trust is enforced.
Failing to Name Beneficiaries
The main objective of a trust is to hold property before it is distributed to your beneficiaries when you pass away. While it makes sense that you must include your beneficiaries when creating your trust, people still make mistakes when doing so. For example, a person may simply say ‘my children,’ which is a very vague term that can result in litigation. If there is a dispute between biological children and adopted or stepchildren, they may have to go to court to resolve it.
Instead, be very specific and list your beneficiaries by their actual names. Without named beneficiaries, the court and the trustee cannot administer the trust effectively.
Our Trusts Lawyer in Daytona Beach Can Help You Avoid Mistakes
There are many benefits that come with establishing a trust, but in order for your wishes to be fulfilled, these documents must be drafted properly. At Bundza & Rodriguez, our Daytona Beach trusts lawyer can create a trust for you and ensure you and your family are protected. Call us now at 386-252-5170 or chat with us online to request 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
