Making a trust of your own can be a good idea, but you need to be careful. Many people make mistakes when setting up their trusts and that can create headaches for them and their families. This is why we recommend talking to one of our Rockland County estate planning lawyers before you try to handle the paperwork all by yourself.

What Mistakes Are Made When Preparing a Trust?

Many mistakes can be made when initially preparing a trust. You could end up with a document that’s not prepared correctly or you could overlook a major issue if you try and do this on your own. Some errors to avoid include:

  • Not making a legally valid plan
  • Creating a trust with terms and rules you did not want
  • Not carefully reading over the trust document
  • Not asking for clarification when there is something that you do not understand
  • Not consulting a lawyer when you set up your trust

We understand the impulse to try and save some money, but this is one thing that you really need to ensure is done correctly.

What Mistakes Are Made When Funding a Trust?

When you set up a trust, you need to fund it. One of the most common mistakes is forgetting to actually choose beneficiaries and finish the funding process. If your assets are not in the trust, they are going to have to go through probate when you pass away. That’s what you are trying to avoid in the first place, so make sure that your trust is funded and that you update it from time to time if you have new assets that have to be protected.

How Do I Pick the Right Trustee?

You also need to be careful about choosing the right trustee. This should be someone that you can rely on to handle the responsibilities that come with handling your assets and following your wishes.

It can also be a mistake to pick a good trustee without actually informing them of your decision. Someone could be the perfect fit for this role, but they may not want it. They may have their own stuff going on, making it difficult to handle the additional obligation. So if you have a particular trustee in mind, talk things over with them first.

Do I Need to Update My Trust?

One of the mistakes that people make is never updating their trust. Things change, and sometimes the terms of your trust need to change as well. You should review your trust documents at least once per year. You may also want to take a look at the terms of your trust after any major life events, like a divorce, a falling out with a relative or friend, or a birth or death in the family.

Contact Our Lawyers Today

If you want to avoid mistakes and ensure that your trust is set up correctly the first time around, contact the Lauterbach Law Firm. We can schedule a consultation and you can tell us more about your estate planning needs.