• 20
  • May
    2011

Far too many Florida residents do not have any type of estate plan. Many who do have some estate planning tools in place do not have a plan that covers all aspects of their health and property. So, people who have a living trust are in many ways ahead of the game compared to the average person.

However, it is not enough simply to establish a living trust and then never revisit it. Trusts have to be maintained. If they aren't, there is a real risk that the purpose of the trust will not be served when the time comes.

Living trusts are a popular estate planning tool because they give the trustmaker control over their own assets. A well-prepared living trust transfers property outside of the probate process, which helps people avoid a public airing of their finances. Another advantage is in the area of incapacity. A living trust can be set to give instructions in the case of incapacity, also avoiding court hearings.

Living trusts also allow people to provide for their spouses without disinheriting children, which is a common desire in the case of second marriages.

All of these advantages, and more, can be forfeited, though, when living trusts are not updated.

Sometimes living trusts get derailed almost before they've begun. This is because people establish their trusts, but then neglect to transfer titles of properties that are being used to fund the trust. Beneficiary designations need to be changed as well. Without these actions being taken, it will not matter what the trust originally intended. Florida living trust attorneys always advise clients that follow-through is crucial in the case of living trusts.

You should also have a will, even if you intend to transfer all of your property via the trust. It is almost inevitable that some property will exist outside of the trust when you die. In order to properly transfer this property according to your wishes, a "pour-over will" is important to have.

Even if you have assistance with maintaining your living trust, it is ultimately the trustmaker's responsibility to ensure that all steps are taken to give the trust its full desired effects.

Source: The Spectrum "Maintaining a living trust is important" 5/14/2011