Three Common Mistakes To Avoid When Establishing A Trust
Establishing a trust is an important way for many people to ensure their property is managed and distributed according to their wishes in the event that they pass away or become incapacitated. There are many different types of trusts you can establish but the most common are revocable living trusts. With a revocable trust, you can manage the property held within it during your lifetime.
Unfortunately, there are common mistakes people make that can undermine the purpose of a trust and create issues in the future. Below, our Daytona Beach trusts lawyer outlines three of the most common mistakes made and how to avoid them.
Not Properly Funding the Trust
Trusts are legal documents and any property that is placed into one becomes the property of the trust. Placing property into a trust requires you to retitle certain property, such as homes or vehicles, or otherwise change ownership. Any property that is not placed into a trust is not governed by its terms and will be subject to probate if you pass away.
To avoid this mistake, it is important to create a list of all the property you want placed into the trust. You can then contact the bank and other asset holders to begin transferring property into the name of the trust.
Not Updating the Trust
It is true that one of the only constants in life is change. People get married, sometimes they divorce, people have children, and sadly, others pass away. Any time there is a major life change it is important to review the terms of the trust to ensure they still reflect your wishes. Overlooking this important step can result in disputes, confusion, and other unintended consequences.
For example, if you name someone as a successor trustee and they pass away before you, it is critical that you name someone else. Over time, changes in tax regulations and the law can also impact the terms of the trust.
Failing to Safeguard the Document
Again, trusts are simply legal documents. However, they are not filed with the court. Instead, once the trust is established, you are simply given the original document and it is critical that you safeguard it by storing it properly. If the document becomes lost or destroyed, it can create serious issues in the future. In addition to leaving the trust in a safety deposit box or a safe in your home, it is also recommended that you make copies and give them to loved ones and interested parties. This can ensure that you and your relatives have a copy when it is needed.
Our Trusts Lawyer in Daytona Beach Can Help You Avoid Mistakes
Trusts are important estate planning tools, but it is critical that they are executed and stored properly. At Bundza & Rodriguez, our Daytona Beach trusts lawyer can ensure that no mistakes are made so you, your family, and your property are protected. Call us now at 386-252-5170 or contact us online to schedule a consultation and to learn more about how we can help.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html
