When planning your estate, you may know you must create a Will, but you should explore other options. For example, you can establish a Trust Fund, which has a variety of benefits. If you’ve done your research and decided that a Trust Fund is right for your needs, taking the time to establish one is critical. However, you may make mistakes during this process that can influence the outcome. If this reflects your circumstances, the following blog explores the most common Trust errors made during this process and how a Medina County, Ohio Trust preparation lawyer can help you through these matters.
What Is a Trust Fund?
A Trust Fund is a kind of estate planning tool that allows the creator to transfer the ownership of assets to a third party to oversee and distribute assets to Beneficiaries named by the creator of the Trust. There are many purposes for creating a Trust, from protecting assets from creditors and lawsuits to ensuring Beneficiaries can receive support while still qualifying for other kinds of assistance.
There are many forms of Trusts you can create, so it’s important to connect with an experienced attorney who can help you explore your options to ensure you create a Trust that reflects your wishes. For example, you can create a Revocable Living Trust, Irrevocable Trust, Special Needs Trust, or Charitable Trust, to name a few.
What Trust Errors Are Common When Creating One?
One of the most common mistakes people make when creating a Trust is doing it themselves. Unfortunately, there are many free or low-cost “DIY” Trust forms available online, leading people to assume they don’t need the help of an attorney. However, doing this on your own can lead to several mistakes and errors that do not reflect your wishes, or worse, could deem your Trust Fund invalid. As such, your Beneficiaries will be left vulnerable. As such, you should connect with an attorney who can guide you through this process.
When you create a Trust Fund, one of the most important steps you must take is to then fund it. Though it may seem simple, many people often forget to transfer property. Failure to retitle your assets to the name of the Trust will leave your assets vulnerable to Probate.
Depending on the kind of Trust you’ve created, you’ll need to appoint a Successor Trustee to assume responsibility for the Trust upon your passing or name a Trustee to manage the assets while you’re alive. This is an important decision and not something that should be made lightly. As such, it’s in your best interest to carefully consider your options and choose someone trustworthy and responsible for this important role.
As you can see, there are many considerations you should make during this complex time. At Krause Law, we understand how complicated creating a Trust can be, which is why our team is ready to assist you. We will do everything possible to help you achieve peace of mind to ensure your wishes will be honored. Connect with us today to learn more.
