Top Mistakes People Make When Creating a Trust
Trust attorneys can help you to use trusts to plan for your family and to protect your assets. Trusts are part of many estate plans because of the fact that these legal tools are very versatile and they can serve many different purposes for those who want to protect their wealth and protect their loved ones. However, while trusts can accomplish many things for you, it’s important to understand that there are some limitations associated with different trust types.
You want to ensure that you make wise use of trusts and avoid mistakes that could undermine your efforts to create a comprehensive plan to control your legacy.
Zimmer Law Firm can help. Our legal team will work with you to determine if you need a trust and to select the right trust type so you can avoid mistakes that could cost you. You should give us a call for personalized advice on trust creation, and you can read on to find out about some of the most common mistakes people make when creating a trust.
Mistake: Choosing the Wrong Type of Trust
Many people who create trusts don’t realize there are big differences between the types of trusts that can be created and the protections that trusts provide. For example, when you make a living trust, you may assume that the trust will ensure your assets will no longer be counted in determining eligibility for means-tested Medicaid benefits, which means you may assume that you’ll be able to get Medicaid to cover your nursing home care if you need it without having to spend down assets.
Unfortunately, this is not true– assets in a living trust can still result in you being disqualified from Medicaid and having to pay for a nursing home out of pocket until you’ve impoverished yourself. Trust attorneys can help you to avoid mistakes like this by working with you to understand your goals and selecting a trust that will help you achieve them.
Mistake: Choosing the Wrong Trustee
When you create a trust, you’ll need to name a trustee. If you are the trustee for a living trust, you’ll need to name a backup trustee. You want the trustee to be a responsible person who will live up to his fiduciary duty and who will manage the trust assets in an appropriate and effective way to keep your wealth safe and provide for your trust beneficiaries. Zimmer Law Firm can help you understand the duties of a trustee so you can select the right person.
Mistake: Not Creating the Trust Document Properly
If you fail to follow the legal requirements for creating a trust, you may think you have a valid trust but not actually have one. This can be a major problem because the mistake may not be discovered until it is too late for you to make the correct trust and get the desired protection for your assets.
Mistake: Not Funding the Trust
When you make a trust, you’re not finished after creating the trust document. You also need to formally transfer the ownership of assets into the trust. You should work with trust attorneys to do this so you can understand the implications of transferring ownership to a trust and so you can get help completing all of the legal paperwork and documents that you must create to make a formal ownership transfer.
Mistake: Not Working with an Experienced Attorney
Because there is so much money at stake, it’s imperative that you work properly within the law to select a trust that will accomplish your goals. Trying to do the process yourself creates significant potential for problems. It’s best to work with an experienced attorney who knows trust law inside-and-out and who can provide the help you need.
Getting Help from Trust Attorneys
When you get help with trust creation from the compassionate and knowledgeable legal professionals at Zimmer Law Firm, you won’t have to worry about making mistakes. Our legal team will guide you through every step of the trust creation process so there is no doubt you will have the right type of trust, properly funded, and valid in the eyes of the law.
To learn more about trust creation and about how our trust attorneys can help you throughout the trust creation process, join us for a free seminar. You can also give us a call at 513.721.1513 today to get the personalized help you need with making your trust.