Living trusts are an increasingly popular choice as the primary document within an estate plan. By writing a living trust, your family members do not have to go through the time and cost of probate, the loss of privacy, and the added stress that comes with court proceedings while they are in the midst of their grief. A living trust offers a way for people to manage their assets and have them managed by someone of their choosing. Many people find relief writing an estate plan, so they can live the rest of their life knowing that the future of their legacy and family is accounted for.
With a revocable living trust, a person has the option of making edits to their plan at any point during their lifetime, as they wish. Life circumstances, finances, relationships, and so many other changes can occur, and they may be expected or unexpected. But either way, a revocable living trust allows someone to make updates as needed until they pass away.
But there are common mistakes that anyone can easily make when establishing their living trust. So if you have questions or concerns now about developing your living trust, you can probably benefit from consulting with a legal team who is knowledgeable in estate planning law. By committing one of these mishaps, it can prevent a trust from working in the way the decedent had intended:
- Not proofreading the trust document
- Not having a properly prepared trust that is legally-binding
- Naming someone as successor trustee who cannot, or does not want to, fulfill these duties
- Not updating a living trust as life changes overtime
- Not funding the trust document as needed
- Not having a lawyer review the document for errors and improvements
To avoid common mistakes like these listed above, you’ll have to make sure that your estate plan is prepared properly, and that your trust documents are written in a way that reflects your wishes and considers applicable laws. You will have to write instructions for how you want your assets to be given to loved ones or charity organizations after your passing. Because of how impactful a document like a living trust can be, make sure you proofread it and have your lawyer review it for mistakes before solidifying, like a trust lawyer families depend on from the Law Group of Iowa.
To avoid confusions when setting up your living trust, you will need to use specifics in your language and make sure your preferences are clearly written. If you are too general or broad in terms, then it leaves room for different interpretations for your wishes. And if that happens, then disputes between beneficiaries can arise, causing further stress for family members who will already be in a state of grief. By taking the time now to make an estate plan and meet with a lawyer, you are setting the foundational future for the loved ones you cherish most dearly.