A trust is a very useful and practical part of an estate plan that can bring considerable benefits to you and your loved ones, including tax reductions – but only if it is created and managed properly. Here are some of the most common issues with trusts to look out for, from a leading estate planning attorney in New Jersey.
- Missing personal details: In order to be administered effectively, your trust must be able to clearly identify beneficiaries, administrators and other important individuals. Incomplete or misspelled names and addresses can lead to confusion and misidentification of beneficiaries.
- Forgetting to include your retirement plan: For many families, their retirement plan is often their biggest asset after their property, and yet it is often forgotten when drawing up a trust or estate plan. Such a significant asset should be prioritized within your estate planning to avoid increasing taxation.
- Inadequate planning for your incapacity: Your trust should include clear instructions on who should control it if you become incapacitated, as well as a clear set of parameters to define what would qualify you as incapacitated. This will also have to include instructions they need to follow regarding gifting, investments and more.
- Limiting powers of trustees: While limiting the powers of trustees seems sensible, it is important that the powers given to them are broad enough to ensure that they can properly manage your trust. Otherwise, they will have to keep returning to court in order to get legal permission to do their jobs.
- Not updating your estate plan: Your trust and estate plan should be updated on a fairly regular basis, especially if you have added to your family with a new child or grandchild, gotten divorced or remarried, etc. This will ensure that your intentions to provide for your loved ones is in line with the trust, rather than excluding a potential beneficiary that you would have wanted to include.
- Forgetting other estate planning documents: A trust is an important and useful estate planning tool, but it should be supplemented by other supporting documents. These can include a Last Will and Testament, medical directive, Financial Power of Attorney and other legal documents that help to protect your assets and wellbeing.
Speak to a NJ estate planning attorney today for comprehensive services
If you would like further guidance on creating or updating your trust or creating other estate planning documents including a Last Will and Testament, Frank R. Campisano can provide you with the necessary expert legal advice and professional insight.
In addition, he can also assist you with all other aspects of your estate plan, from drawing up medical directives and Power of Attorney documents to Medicaid planning. For more information on setting up or changing an estate plan, please contact Frank at the law firm of Sedita, Campisano & Campisano, LLC in New Jersey or visit our website at https://www.scclegal.com/