Aim toward a partnership with your attorney when creating a trust.
Common mistakes include:
- Inheritance Planning – An attorney can make sure all of your current assets are planned for, but if you are expecting to receive a large inheritance in the future, then your attorney needs to know about that so it can be planned for as well.
- Multiple Attorneys – If you have different attorneys for different estate planning documents, then it is more likely that there will be contradictions in those documents. That can be expensive to sort out.
- Multiple Beneficiaries – It should not be assumed that one trust will work for everyone you wish to name as a beneficiary. Treat them as uniquely as circumstances require.
- Decanting – Attorneys and clients need to discuss whether the client wants trustees and beneficiaries to be able to modify the terms of the trust at a later date, to include "forum shopping" when it comes to finding more favorable state laws.
- Trust Termination – It is not always a good idea to create a trust that terminates at a specific time no matter what happens.
An estate planning attorney can guide you through the process of creating a trust but does need your assistance.
Reference: Barron's Penta Daily (June 18, 2016) "Five Killer Mistakes Trust Lawyers Make"