Your estate plan can be very beneficial in that it may take care of your loved ones financially when you are, unfortunately, no longer around. But this is so long as it is properly prepared. This is especially the case for your living trust. Read on to discover the common mistakes that are made when establishing a living trust and how one of the seasoned Butler County trust attorneys at Heritage Elder Law & Estate Planning, LLC can help you avoid them.
What is a living trust?
First of all, a living trust is an estate planning document in which you may establish who may have access to your assets, who may control your assets, and how your assets may be distributed once you have passed on. The added benefits to a living trust are as follows:
- This option allows you to hold onto ownership of your assets during your lifetime.
- This option allows you to largely cut out government interference from your plans.
- This option allows your loved ones to avoid the probate process once you have passed on.
- This option allows your loved ones to reduce their costs in their tax filings once you have passed on.
- This option allows your loved ones to avoid fighting each other in court once you have passed on.
What are common mistakes that are made when establishing a living trust?
If you make a mistake while creating and establishing your living trust, it may not work in the exact way you intended. What’s worse, it may be found inadmissible in the state of Pennsylvania. Without further ado, it may be in your best interest to avoid the following common mistakes:
- You must avoid using online or do-it-yourself documents, or else you may run the risk of it being invalidated in the state of Pennsylvania.
- You must avoid signing this document if you do not understand certain parts, or else you may run the risk of approving terms that are outside of your intentions.
- You must avoid leaving your living trust unfunded or with insufficient funds, or else you may run the risk of your assets going through probate.
- You must avoid naming the wrong successor trustee, or else you may run the risk of having someone not follow your instructions or overall fail at their duties.
- You must avoid leaving your living trust outdated, or else you may run the risk of having asset distribution instructions that are no longer relevant.
You must remember that there are strict laws surrounding what makes an estate plan valid and enforceable. So please do yourself the favor and retain the services of one of the competent Butler County estate planning attorneys from Heritage Elder Law & Estate Planning, LLC today.