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:
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.
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.
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 If your trust is outdated for whatever reason, it may not be implemented.
Changes in law can also render your trust outdated and, thus, invalid.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.
]]>While starting as early as possible is always wise, it is never too late to begin. If you cannot decide how, use this blog as a handy first-steps guide.
The cornerstone of any estate plan is a valid will. It can lay out your wishes for distributing assets like real estate, bank accounts and treasured belongings to your beneficiaries. Without a will, the state dictates how your assets are divided, possibly belying your desires.
Life can be unpredictable. If illness or injury leaves you unable to manage your finances, a financial power of attorney ensures someone you trust can handle your bills, investments and other matters. It authorizes your chosen agent to act on your behalf, preventing potential financial strain on your loved ones.
Advance medical directives, like a living will or health care power of attorney, allow you to explain your wishes for treatment when you cannot express them. Name a trusted individual to make healthcare decisions that reflect your values and morals. For example, you can specify desired treatments and refuse unwanted interventions.
Addressing these three concerns early in estate planning gives you immediate protection in case of the worst. Once you have these three basics, you can relax and consider other documents to fill any remaining gaps in your plan.
Consulting with an experienced Florida estate planning representative can provide valuable guidance and ensure your plan is legally sound.
]]>Of course, you could opt not to leave any inheritance to your children. Some people decide to give most of their wealth to charity. But there is another option if you would like to provide your children with an inheritance in a way that still incentivizes them to work.
What you need to do is put the inheritance money into a trust. You can then stipulate how it should be paid out to your adult children after your passing.
For example, you may decide that you want your child to get an annual payment from the trust, rather than getting the full balance at once. The total payment that they receive should be the same as the amount of money they earn that year.
This way, if that person works hard, gets promotions, earns commissions and increases their salary, they get more money out of the trust. But if they stop working entirely, they do not get anything. They still have an incentive to continue working and they have motivation to work hard, despite the inheritance.
This is just one way that you can use a trust as part of your estate plan. Carefully look into all of the options at your disposal.
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