Posted on: 20 March 2020Share
There was a time when a will was the only document people had to provide financial protection for their families. Now people have realized that they may actually need more than a simple will. If you've realized that you need a trust for your final estate, make sure you get everything done right. Here are four tips that will help you avoid troubles with your trust.
Start With the Right Trust
When it comes to preparing your estate, you've got to start with the right trust. When choosing the trust, you'll want to choose a revocable trust. A revocable trust allows you to make adjustments to your wishes. If you plan to leave your trust alone once it's in place, an AB trust will suit you best. With an AB trust, your assets will pass directly to your spouse once you pass. It's important to note that a revocable trust is subject to taxation.
Avoid the Wrong Property
If you're going to place your estate into a trust, you'll want to include the bulk of your assets. Placing your assets into a trust will help protect your survivors from probate troubles. Some of the assets you should place in your trust include bank accounts, personal property, and investment accounts. When creating your trust, it's important to know that some of your assets need to be left off. Those assets include life insurance policies and retirement accounts. Those assets need to be handled separately from your trust.
Choose the Right Trustee
Now that you're creating your estate plan, you need to choose a trustee for your trust. In most cases, you'll want to have two trustees for your trust. You should be the first trustee. That's because you'll need to have access to your trust, especially if you want to make changes. In addition to your position as trustee, you'll also need to choose a second trustee. The second trustee will be responsible for the management of your trust once you pass away.
Know When to Use an Attorney
If you've opted to create your own trust, know when to consult with an attorney. Many people choose to use do-it-yourself templates and programs for their estate plans. That might work well when creating the initial groundwork for your estate plan. However, to make sure that your estate will stand up to scrutiny, you need to work with an attorney. This is especially important if you feel that any of your survivors will contest your will.
Contact an estates and trusts attorney for more information.