Does a Trust Take Care of Everything in My Estate Planning?

A trust is an important tool that makes a lot of sense in its various forms for the right person. However, it is a mistake to assume that an estate planning trust will accomplish each and every one of your estate planning goals.

Most sizeable estate planning strategies incorporate a revocable or an irrevocable trust in some format and it’s important to recognize what this process actually means for you as well as the asset.

When an asset is placed inside the control of an irrevocable trust, the ownership of the asset is handed over to the trust and the management of it is given to a trustee. The trustee must maintain a fiduciary responsibility to the beneficiaries of the trust which can create some forms of conflict for the trustee. This is most problematic if you put together a trust and hand over the role of trustee to a family member when other family members are beneficiaries.

This can put unnecessary strains on family relationships in the future and is often a good reason to use a third party like a professional or corporate fiduciary to play that role outside of your family and reduce the individual pressure.

Remember that a trust is only as good as it is aligned with your individual goals and has been properly funded. This is why the selection of the right kind of trust matters so much and why you should count on an attorney’s support as you navigate through that process.

For further information about the trust creation steps, meet with an estate planning attorney licensed in Maine and New Hampshire now.