You may have established a last will and testament and assume that this may serve as the extent of your estate planning. However, you may want to strongly consider taking it a step further and establishing a living trust, as well. And you must not shy away from this estate planning tool simply because of the negative, and more likely than not false, connotations that you have heard associated with it. Continue reading to learn how the purpose of a living trust might be misinterpreted and how an experienced Broward County trust lawyer at The Probate Lawyers can help you maximize the benefits you reap from it.
How is the purpose of a living trust most commonly misinterpreted?
You must understand that there are many advantages to adding a living trust to your estate plan. For one, it may allow you to curb government interference with your plans for asset distribution to your desired beneficiaries. What’s more, it may allow your beneficiaries to avoid the time-consuming and emotionally draining process that is the probate court. Lastly, it may allow your beneficiaries to reduce the cost of their tax filings with their newfound inheritances. Unfortunately, these benefits are usually masked by misconceptions. Without further ado, below are the most common misinterpretations of a living trust that we advise you to ignore:
- A living trust is more expensive to execute than a last will and testament.
- A living trust is not necessary after having established a last will and testament.
- A living trust is exclusively designated for high-net-worth individuals with significant financial portfolios.
- A living trust forces grantors to give up full control over their assets while they are living, when they become incapacitated, and when they pass on.
- A living trust requires that trustees be paid significant compensation for their services, which cuts into the amount of assets distributed to desired beneficiaries.
What are mistakes that are most commonly made with a living trust?
However, it must be said that a living trust may become disadvantageous if you make a mistake in its execution. Without further ado, below are the most common mistakes with a living trust that we advise you to avoid:
- You should not and cannot leave your living trust unfunded.
- You should not and cannot use an online platform to fill out your living trust.
- You should not and cannot sign your living trust without understanding the implications of each term and condition.
- You should not and cannot appoint a successor trustee without receiving their consent to take on this serious responsibility.
- You should not and cannot leave your living trust outdated after going through a significant financial change or overall life change.
When it comes to your living trust, there is no other than a skilled Broward County estate lawyer to have in your corner. So please get in touch with us at The Probate Lawyers today.
