Establishing a Trust Fund is one of the most effective ways to ensure that your heirs and assets are cared for after your passing. This process allows you increased control over how your assets are distributed to your Beneficiaries, as well as avoiding the Probate process. However, many people unfortunately make a number of errors during this process that can severely disrupt their plan. As such, the following blog explores what you should know if you are considering establishing a Trust, as well as the importance of discussing your circumstances and wishes with a Medina County, Ohio Trust preparation lawyer to ensure your wishes are documented.
What Are Common Trust Fund Mistakes and How Do I Avoid Them?
In general, one of the most common mistakes people make when establishing a Trust Fund is failing to actually fund it. While creating the terms and conditions of the document is essential to ensuring your wishes are honored, the person you appoint as your Trustee will be unable to carry out your wishes if the assets they are responsible for distributing are not held by the Trust. As such, ensuring you take the steps to retitle assets in the name of the Trust is critical to ensuring that these assets avoid probate and are distributed in accordance with the terms and conditions of the document.
Another common error that people make during the Trust creation process is appointing the wrong person to serve as the Trustee. When you create a Trust, this entity is responsible for not only making decisions in the best interest of the Fund, but ensuring that your wishes are honored. As such, if you appoint someone who is not trustworthy or responsible, it can result in considerable conflict, especially in terms of family units. It is imperative to consider all aspects of this role, including the responsibilities, time commitment, and stress that can accompany it, to ensure you choose the right person to assume this position.
What Else Should I Consider When Establishing a Trust?
Unfortunately, when establishing a Trust, many assume that once they sign the document, no further action is needed. However, as you age and your life changes, the terms and conditions of your Trust may also change. As such, taking the time to review and update your Trust is one of the most important things you can do to ensure your wishes are honored upon your passing.
As you can see, ensuring you take the necessary steps to not only create a Trust fund but also ensure that it accurately reflects your wishes as your life progresses is critical. If you are ready to begin this process, working with an experienced attorney at Krause Law is in your best interest. Our firm understands that this process can be overwhelming, which is why we will do everything in our power to help you understand your options so you can make the best decisions for your circumstances. Contact us today to learn how we can assist you during this process.
