Trusts can be valuable estate planning tools.
Trusts can preserve wealth.
They can also cause major headaches.
According to a recent Forbes “Why You Might Need To Fix Your Family Trusts,” a trust may not always the best solution for a family.
First, it could be set up incorrectly.
This can happen when the person creating the trust does not truly understand what he, she, or they want to provide for loved ones.
The trust could also have been written poorly.
Perhaps the trust language is too vague.
Perhaps it is not appropriate to the situation.
The trusst could have been poorly planned.
If your trust was too specific and did not anticipate commonly encountered changes in circumstances, it could be inefficient or ineffective—especially with changing laws.
How can you know if your trust should be revisited?
You can begin by asking yourself a few basic questions.
Does my trust have provisions to provide necessary distributions to family members?
Does the trust provide sufficient oversight to its management?
Does the trust provide appropriate tax protections?
These are just a few possible questions, but a review with an estate planning attorney will certainly reveal additional questions for your consideration.
eference: Forbes (October 17, 2018) “Why You Might Need To Fix Your Family Trusts”