A trust is a solid component of any advanced estate plan, but it is certainly not the only thing that you can rely on to handle the aspects of administering your estate. It is an effective strategy to use a trust but it is also far more complex than most people realize.
If you fail to consider all of the important details of how the trust operates as well as how the trust fits into your bigger estate planning picture, this can create more problems than benefits. It is important to understand that when an asset is put inside the trust, the type of trust matters because this will dictate the true benefits.
An irrevocable trust is one that cannot be changed or amended whereas a revocable trust can be updated during the creator’s lifetime. When an asset is put into an irrevocable trust, control of that asset formally goes over to a trustee who then manages the fiduciary responsibility of the trust to the beneficiaries.
These interests can create conflicts for trustees in some situations, such as when a family member is appointed as a trustee but other family members are the beneficiaries of that asset.
This can put a significant amount of burden on the trustee and can also cause conflicts with family members. This is one reason why it makes sense to discuss your options about putting together a trust with the help of an experienced and knowledgeable Pasadena estate planning lawyer.
Whether it’s a trust, a will, or some combination of both along with other estate planning documents, you need an attorney who can help you customize your strategy based on your individual goals. Make sure that your trust is properly funded and has a primary and contingency person named to serve as a trustee.