Knowing what mistakes to avoid when creating a living trust is extremely beneficial to ensure that your trust reflects everything you intended it to. When people create a living trust they tend to just leave it as is, but life is constantly changing. Oftentimes, people make the mistake of not updating and reviewing their trust regularly, They can’t think of who they want to make their beneficiaries and end up never specifying who they want to name in the trust. This could lead to your intended beneficiaries getting nothing once you die. If you have not planned or established a living trust, reach out to a dedicated Montgomery County Trust Attorney who can help you avoid making any mistakes when it comes to establishing your trust.
What mistakes should I avoid when drafting a trust in Maryland?
If you are setting up a trust, you should specify who your beneficiaries are. Ultimately your trust is created to ensure that your assets go directly to your beneficiaries after you die. If you make the mistake of not listing any beneficiaries, they will not be able to obtain the assets you intended for them. To avoid leaving your beneficiaries with nothing, you should not only specify your beneficiaries but also have backup beneficiaries. Another common mistake is not picking a successor trustee. If you ever become unable to manage your trust for various reasons, your successor trustee will take over. This person will have the power of your trust so pick a successor you unconditionally trust. A huge mistake people also make is appointing the wrong trustee. You need to understand what a vital role your beneficiaries and successor trustees play.
Should I Regularly Update and Review My Trust?
If you have an established living trust, you should regularly update and review it to ensure there are no mistakes. Ensuring your trust has no mistakes will give you an extra sense of relief knowing your trust reflects what you intend it to. Change is constantly happening, if your circumstances change you will need to edit your trust accordingly. Oftentimes, people make the mistake of never updating their trust to reflect their current circumstances.
When you are estate planning, it is typical for people to include a trust. To avoid making any mistakes, you should consult with an experienced attorney. Don’t hesitate to reach out to a committed Montgomery County Estate Planning Attorney who can not only help you with your estate planning but also help you establish a trust.
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Our firm has experience with matters of estates & elder law, business law, tax law, and litigation. Contact JD Katz, PC today for assistance.