A Mistake With A Living Will Can Be A Huge One
Creating a trust is an important part of the estate planning process, but it is not enough to simply create this document; it must be prepared without error and with full consideration. Unfortunately, not every person understands this factor, and as a result, they end up creating a trust that is almost worthless. It is important to avoid any costly missteps that could affect your loved ones.
Self-Drafting
A trust is a legal document. Unless you are well-versed in the law, it is highly likely that you will have a hard time preparing the document in a way that can be upheld by the law. Sure, there are plenty of templates and other instruction materials available on the internet to help with the process, but the reality is that this information is generic and limited.
As a result, it will likely not be very helpful for your situation. The best thing for you to do is to hire an attorney who will prepare the document on your behalf.
Creditor Protection
Often, people think of a trust as a shield. Sure, you are able to put items in a trust and allocate them to a beneficiary upon your death while you are still alive, but they are not automatically shielded. If you do not go about the process correctly, your creditors can still access these assets, as can any creditors that the beneficiary may owe.
Due diligence is especially important when putting an asset into a trust. You should instead sit down with an attorney to determine how you can best protect your assets while you are alive and how to protect your loved ones upon your death.
Trustee Designee
It is also important to exercise a great deal of due diligence when it comes to designating a trustee. Upon your death, the trustee will ultimately serve as you in your absence. You want to be certain that the person you select will execute the trust in the manner that you would have.
For this reason, it is not always the right choice to designate the person closest to you as a trustee but instead to designate the best person for the job, regardless of how close you are with them. An attorney can sit down with you and help you determine some of the factors you should think about as you make this selection.
An attorney is your best defense against a mistake. Speak with an attorney who can go over your estate plans with you and help you prepare a legally binding trust that is all-inclusive.
To learn more, contact a will and trust attorney.