Creating an estate plan can be an incredibly overwhelming process, as you may be unsure where to begin. While you may assume that all you need is to create a will, this is not always the case. While a will can serve as an important foundational document for your estate plan, you may want to consider the benefits of establishing a trust. If you decide to create a trust fund, it’s also in your best interest to familiarize yourself with the most common mistakes people make during this process so you can avoid them and ensure your assets and beneficiaries are protected. The following blog explores what you should know about these issues, including what mistakes are most common, how choosing the wrong trustee can derail your plans, and the importance of working with St. Louis wills & trusts lawyers to help you through these complicated matters.
What Trust Fund Mistakes Are Most Common in Missouri?
There are a number of mistakes that those looking to establish a trust fund can make that will negatively impact the effectiveness of this document.
One of the most common mistakes that people make when creating a fund is failing to trust. Unfortunately, many people assume that as long as they write the terms and conditions of the fund, you’ll find that you need to retitle the assets so that they are in the name of the trust fund. Failure to retitle the property can result in these assets going through probate.
Another common mistake that is often made is failing to update the trust fund as your life changes. As you go through changes, like marriage, divorce, the birth of a child or grandchild, and the acquisition of new property. Failure to update and review your trust funds can impact how these assets are divided and who receives them.
If I Choose the Wrong Trustee, Will This Ruin My Plan?
One of the most common mistakes that people make when creating a trust, however, is naming the wrong trustee. When you establish a trust, you’ll find that you’ll need to appoint someone as a trustee. This person is responsible for managing the trust, including making important financial decisions on behalf of the trust fund. This person will need to make investments, distribute funds, and ensure that they act in the best interests of the trust fund rather than prioritizing their own interests.
Unfortunately, however, you may find that appointing the wrong person can be incredibly damaging. Appointing someone without financial skills, untrustworthy, or incapable of making decisions on behalf of the trust due to personal conflicts. In the event that an untrustworthy individual is appointed as the trustee, they can drain your trust, leaving your beneficiaries vulnerable.
As you can see, it’s important to understand that enlisting the assistance of an experienced attorney is critical to help you navigate these difficult matters. Without an attorney, you’ll find that trying to DIY this process can result in errors that invalidate your will or directly conflict with your wishes.
At Stobie Family Law Group, our firm understands how important planning for the future is, which is why we will do everything in our power to ensure you understand the different options available to you during this time. When you need help, contact our firm today to learn how we can assist you in creating a trust fund.
