One of the many components of an estate plan is a trust, which can benefit your loved ones once you pass. Trusts and estates are commonplace in many situations. An account like this is ideal for those individuals who have children or a dependent with special needs.
It is vital that you periodically review your plans to make sure that the current information is on file.
If you are looking into a trust, now is the time to speak with a trusts and estates attorney in NYC to help guide you and provide you with the advice needed to set one up properly.
Avoid These Trusts and Estates Mistakes
Below, we will talk about some of the common trust mistakes you want to avoid. An experienced and qualified trusts and estates planning attorney can assist you in making the right decisions for your future.
Mistake 1: Not providing instructions
One of the first mistakes that can be made when creating a trust is not providing instructions with it. If you fail to do so, then no one will know how the trust should be handled.
While your instructions do not have to be too detailed, you may want to set stipulations, which would need to be done in writing. For example, if you leave a trust to your granddaughter, you may not want her to have access to it until her 21st birthday.
Mistake 2: Not funding the account
Failing to fund the trust account can lead to problems later down the road. If you do plan to create a trust for someone, do make sure you make regular deposits into it; otherwise, you may be better suited with a savings account or another option.
Mistake 3: Choosing a bad trustee
When you create a trust, you will need to assign a trustee to the trust. This individual is responsible for making sure that the trust is handled the way you want. It can be difficult to choose someone to oversee it, but, whomever you choose should be someone you trust to honor your wishes
Mistake 4: Not adding any beneficiaries
Failing to add beneficiaries to the trust can lead to problems when you pass away. If there is no beneficiary on the account, the account may go into probate, especially if there is no designation for the account in your estate plans.
Mistake 5: Not updating the trust
The last mistake is one that can truly affect not only you but the intended recipient of the trust too. Failing to keep the trust updated can mean that prior wishes are carried out instead of your current wishes.
A Trusts and Estates Attorney Can Help You
Whether you have a trust in place, or you want to create a trust, our skilled and experienced trusts and estates attorney at Morgan Legal Group PC can assist you. We can offer you the guidance needed to not only get the trust started, but manage it, and avoid the above five mistakes.
If you would like to schedule a consultation, now is the time to call us at 212-561-4299.