A living trust is one of the most important estate planning documents that you can ever create. Done right, a properly written and funded living trust can offer several benefits to your estate and heirs.
To serve its intended purpose, however, your living trust must be valid. Knowing what can go wrong with your living trust can help ensure that you create a document that will preserve your legacy.
Here are some instances when a living trust may be declared invalid:
If it is poorly prepared
Some people try to save money by using DIY templates when drafting their trusts. However, this can cause problems, especially if the templates you are using do not comply with Florida trust laws. Besides wasting time and money, you might end up with an invalid trust that will not leave your estate plan and inheritance plans in disarray.
If there is evidence of undue influence
Undue influence refers to one person’s unlawful influence over another. In the context of estate planning, undue influence happens when someone manipulates you to draft your living trust in a manner that either unjustifiably benefits them or deprives a dependent of their fair share of inheritance. An example of undue influence would be when a caregiver manipulates an elderly settlor to amend their living trust in their favor.
If it is outdated
You can alter a living trust as you wish. Also, you can add and remove assets from this type of trust. However, it’s important to understand that the accuracy of the trust is extremely important since it reflects your personal, family and financial situation. If your trust is outdated for whatever reason, it may not be implemented.
Changes in law can also render your trust outdated and, thus, invalid.
From protecting your assets in case of incapacitation to avoiding probate, a living trust can provide immense peace of mind. Find out how proper legal guidance can help you draft a living trust that will reflect your wishes and safeguard your legacy.
