Avoid These Mistakes When Writing A Living Trust

A living trust is a legal document established by the grantor during their lifetime to protect their assets and direct the distribution of their assets upon their death. The beneficiary of a trust is the person for whom the trust is created and who generally may receive the property from the trust after the death of the grantor.  When setting up a trust, you must name a trustee, who handles the distribution of the assets to the beneficiary.  Establishing a living trust is complex, and if you make a mistake, it could make things harder on your family after your death. Below, our St. Petersburg trust planning lawyer outlines the most common mistakes made when creating a living trust, and how to avoid them.

Failing to Show Intent to Create the Trust 

Florida courts take property rights very seriously, and so, it is essential that you show your intention to create a trust. You must be clear in your intention to relinquish control of the assets to the trust and potentially for someone else. Your intention must be very specific. With a living trust, you generally control the trust during your lifetime and retain the right to revoke it.  If you fail to show intent to create the trust, it may be contested or deemed void by the court.

Not Sufficiently Funding the Trust 

The main function of a trust is to hold property, meaning you must “fund” the trust. If you fail to fund the trust properly before you pass away, your assets will not end up in the trust and likely will be subject to probate. Funding a trust means transferring the title of the property from its current title to the trust.  For example, you may own an asset in your individual name, and to put that asset into the trust, you will change the title on the property to the name of the trust. This shows a change of ownership and will protect your property from probate.

Using Vague Terms 

Florida courts generally do not consider terms such as ‘hope’, ‘request’, or ‘desire’ adequate to enforce a trust. If you use this type of language when in your trust document, it may result in litigation. You can avoid this by using clear and specific language. There should be no doubt about your wishes. The best way to avoid this mistake is to work with an attorney who will ensure your trust includes appropriate language.

Not Naming Beneficiaries 

Again, the main purpose of a trust is to hold properties that will be transferred to your beneficiaries when you pass away. You must clearly designate beneficiaries by name. Using language such as ‘my children’ may be too vague and may result in complex litigation if there is a dispute between biological children and stepchildren or adopted children. If there are no beneficiaries named, the trustee and the court cannot effectively administer the trust.

Our Trust Planning Lawyer in St. Petersburg Can Draft Your Document 

Living trusts have many benefits, but they must be drafted and prepared properly in order for your last wishes to be respected. At Legacy Protection Lawyers, LLP, our St. Petersburg trust planning lawyer can help you create your trust to protect you and your family. Call us today at 727-471-5868 or contact us online to schedule a consultation and to learn more about how we can help.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html