Common problems with living trusts
The benefit of establishing a living trust is that your assets can pass to your heirs or beneficiaries without going through probate. While there are important benefits to setting up a living trust, complications and problems can occur that can interfere or even invalidate the transfer of your assets.
The top 5 common problems with living trusts include:
- Failure to show intent to create a trust — the individual granting the property must show that making such a grant of assets and property was intentional
- Failure to provide ample funding for the trust — the grantor must deliver the property and place an adequate item or sum in trust for it to survive
- Failure to instruct beyond precatory language — precatory language, while expressing a wish or desire, does not create a legal obligation. Therefore, the trust document must contain language which creates a legally binding obligation
- Failure to name ascertainable beneficiaries — a viable trust must name a specific person or group of persons to whom the benefits of the trust are to be conveyed as well as setting out the terms of the trust and the duties of the trustee
- Failure to formalize it in a document — a grantor must put the terms of the trust in writing in order for it to be considered a valid and legal document
You can’t be too prepared
A living trust will probably be one of the most important documents that you’ll create during your life. Problems with living trusts can be avoided if you do the following before the trust is created:
- Make a list of all your assets
- Have all the paperwork for your assets available and in order
- Choose your beneficiaries and a successor trustee
- Choose a guardian for any minor children
Once this process is completed, you need to enlist the services of an attorney with experience in the process of setting up a living trust. This is vital to creating a legal document that will allow you to designate how your assets are to be distributed, to set up healthcare directives, and much more.
You’ll no doubt have questions to ask about the process such as how long it takes to get a living trust, who should be your trustee, are there any drawbacks to a living trust, and what property can go into a living trust, to name a few.
At California Living Trusts, our living trusts are comprehensive and of the highest legal quality. We’re available to answer all questions and concerns because we understand the importance of ensuring that those your love will be well-cared for in the event of your death.
The protection your family deserves
If you live in Southern California and are interested in creating a living trust, contact the experienced living trust attorneys at the San Diego Law Office of David W. Foley, California Living Trusts.
Our attorneys are well-versed in California law and will guide you through the process so that you can avoid common living trust problems.Schedule your FREE Consultation