If you are considering establishing a trust, trust lawyers should be consulted as early as possible to help you decide what type of trust is right for you. If you create the wrong kind of trust, the consequences could be serious. You may not be able to fix the problem and minimize or mitigate the consequences of having the wrong trust type, especially if your mistake is not discovered until after the damage is done.
Parman & Easterday has helped many clients in surrounding areas select the best type of trust to accomplish their goals. We will be there for you at every step of the trust creation process. Not only do we help you select the trust that meets your needs, but we help you create your trust and fund it so the trust provides protection for your assets and loved ones. You should give us a call today to find out ways in which our legal team can help you with trust issues and to learn if a trust can help you protect your family and legacy.
What If You Create The Wrong Type Of Trust?
If you create the wrong type of trust, you may believe your trust assets are protected and your trust is providing the desired benefits. Because people expect trusts to protect their family and their assets in case of their incapacity or death, having the wrong type of trust is a very serious problem.
If you expecting your trust to preserve your wealth if you become incapacitated and it turns out you have the wrong kind of trust, you won’t be able to fix the problem because you cannot execute a new trust while you are incapacitated. If you expect your trust to protect your wealth when you pass away and the problem isn’t discovered until after you have died, it is too late to fix the problem.
How Could Making The Wrong Type Of Trust Affect You?
There are many different kinds of trusts, all of which accomplish many different purposes. If you have the wrong kind of trust, the consequences can be serious depending on what you wanted your trust to do.
For example, many people create a trust to avoid probate at their deaths. If you want your wealth to pass to your loved ones in a fast and private process called trust administration, a revocable living trust will accomplish this goal. It is a great way to transfer assets outside of the probate without giving up control of your wealth while you are alive and capable.
The problem is that many people think because assets are held within a living trust and transfer outside of probate, this means they won’t have to pay estate tax. This is not true. Assets owned by your living trust are part of your estate for tax purposes. Your trust can make specific provisions to avoid or reduce estate taxes, but if it doesn’t and you have a taxable estate, you will still pay estate taxes.
Other people think their living trusts will help them qualify for Medicaid to pay the costs of a nursing home, but if you have the wrong trust type, you won’t get the expected protection.
Getting Help From Parman & Easterday Trust Lawyers
Parman & Easterday can offer the help you need to avoid mistakes, such as selecting the wrong trust type or failing to fund the trust once it is created. To find out more about how our legal team can assist you with the legal issues involved with trust creation or trust administration, join us for a free seminar. You can also give us a call today at (405) 843-6100 or contact us online at any time to learn more about what the assistance offered by our legal team.