Every stage of the estate planning process is important, and that means that you need to take your time to properly set up everything and avoid some common mistakes. One area that can trip up our clients is the living trust. There are many ways to make errors when you are trying to establish your trust, but a Fayetteville, Arkansas trusts lawyer can guide you through this process and help you avoid some of these familiar pitfalls.
What Happens If I Do Not Fund My Living Trust?
One of the biggest mistakes people make with their living trust is forgetting to completely fund it. Your living trust can help you distribute assets to beneficiaries after you pass away, and that avoids a lengthy probate process that can just stress out your family.
However, you can only take advantage of this benefit of a living trust with assets that are actually in it. If you forget to finish funding your trust and forget to put more assets into it, your loved ones are going to have to deal with it later.
What if the Trustee Does Not Handle My Living Trust Appropriately?
You need to name the right person as your trustee. You should take into account how long a trust will last, what it is meant for, and what a trustee would have to do. Maybe your oldest child or spouse, two common choices, are not actually the best fit here. Perhaps you would be better off with a lawyer or another professional acting as your trustee. We are just saying that you should think carefully before you designate someone as your trustee.
What Happens If I Do Not Update My Living Trust?
Many people set up a trust and then just let it sit there. Circumstances change though, and sometimes those changes should encourage you to change your estate plan and living trust. Meet with your estate planning lawyer occasionally and address any updates you would like to make to your trust.
Are There Any Other Common Living Trust Mistakes?
One of the biggest mistakes people make is not having their documents properly prepared. Sometimes people think they can just go on the internet and find the forms they need, and then they prepare everything themselves to save money.
This can be a big mistake. Establishing a trust is complex work. If documents are not properly prepared, your estate plan may not even be legally binding. Talk to an attorney who knows what they are doing and make sure that your loved ones are provided for.
Call Our Law Firm Today
If you are ready to set up a living trust of your own, talk to our seasoned estate planning lawyers. The attorneys at the Knapp Law Firm can make it easier to ensure that all of your assets are protected and that your beneficiaries will be provided for.