Home » Blog » When Living Trust and Estate Planning, One Size Does NOT Fit All
When Living Trust and Estate Planning, One Size Does NOT Fit All - Werner Law Firm

When Living Trust and Estate Planning, One Size Does NOT Fit All

Troy Werner and his family

Written by Troy Werner

Troy Werner has been an indispensable asset to The Werner Law Firm since joining in 2009, providing exceptional legal service to its clients.

Get To Know Troy!
POSTED ON: October 31, 2018

A living trust is a complicated estate planning document meant to provide an individual with a large and complex estate the means through which to plan their family's inheritance, in a way that affords greater flexibility than a last will and testament or most other documents. Trusts are drafted and signed by a grantor and […]

A living trust is a complicated estate planning document meant to provide an individual with a large and complex estate the means through which to plan their family's inheritance, in a way that affords greater flexibility than a last will and testament or most other documents. Trusts are drafted and signed by a grantor and trustee, for the benefit of an assigned beneficiary (or several).

The point of trusts is that they are versatile, flexible, and capable of more than your average estate planning document. They are also time-consuming and costly to set up, meaning that most people have to crunch the numbers and figure out if the benefits outweigh the cost.

Because of that, the idiosyncrasy of an affordable cookie-cutter living trust has become quite popular on the Internet. But the reality is that a one-size-fits-all trust is a bad trust, and a well-crafted living trust is all about specificity as well as choosing the right professionals to help you design and draft the document.

Why One-Size-Fits-All Living Trusts Are Not Trustworthy

Living trusts need to be designed as per each state's probate code, and as per the unique needs and requests of the trust's grantor.

Even a small clerical error can potentially void a trust, and lead to a big legal disaster and serious fees. The cost of a trust that is not up-to-code or includes an error will often outweigh the cost of a proper professionally-crafted trust; and if your estate truly needs a living trust, then the benefits of getting one drafted and notarized will far outweigh any potential downsides or short-term costs.

For example: if you have a child with special needs, they may be incapable of managing their own finances in adulthood. They will also likely outlive you, meaning there is a chance that your child will not have a specified caregiver after you and your spouse pass away.

A special needs trust can be drafted and notarized to provide for your child long after you are gone, should anything happen to you and the rest of the family. Such a trust would not simply dump a portion of your estate into your child's lap - rather, it would stay active throughout your child's life, giving a responsible trustee access to a portion of the estate to help manage your child's finances.

The trustee would be legally obligated to uphold their fiduciary duty to your child, while your trust ensures that the estate money given to your child is used responsibly and with their best interests at heart.

Trusts can also be used to avoid certain creditors from taking portions of your estate that are assigned to your children. They can protect your assets through an irrevocable living trust, or protect your heirs from themselves.

A trust's purpose must be clearly outlined in its document, and it must be drafted in such a way that ensures that it remains state-specific and perfectly represents what the grantor needs it to represent. Because of that, it is important to draft a trust from scratch with the help of an experienced professional who understands all of the details of local estate planning law.

Hiring a Reputable Estate Planning Professional

When it comes to estate planning, the most important thing is location. You need to find an established firm in your area, set up by an experienced attorney with an expertise in family law and trusts.

Finding a firm with a reputation you can be confident in is important as well. Ideally, you would want to involve people you can trust in your estate planning affairs. Setting up a living trust requires a grantor (you) and a trustee, to manage the trust after you pass. In some cases, however, you may simply not know anyone capable of carrying out that task.

While your lawyer is likely not going to agree with being your trustee, it is likely that their law firm is partnered with a good trust company to act in your interest. A professional trustee carries special legal obligations to fulfill their fiduciary duty, providing some comfort in the fact that your trust would be in capable hands.

Estate Plans, Trusts & Beyond

Cookie-cutter estate planning carries tremendous risk: there is a reason that websites are required to inform customers (per disclaimer) that their advice and templates do not substitute for advice from a hired lawyer, or a real personally-drafted legal document.

Trust laws can and do change from state to state, and your situation will likely be very different from that of another person. You may own property in several different states, which means that you need an estate plan that covers this issue:one which takes into account the different real estate laws throughout the country, as well as the matter of ancillary probate.

Wills, living trusts, living wills, and power of attorney documents should be drafted by a professional, working closely with you to coordinate an effective estate plan that keeps money in your pocket and also gives your family the best shot at a hassle-free inheritance process after you pass away.

Consider Your Unique Needs & Circumstances

An important question to ask is whether a trust is wholly necessary for you in the first place. The thing about living trusts is that they are often advertised as being capable of more than they actually are, and they are touted as an affordable alternative to the probate process. The reality is that a living trust is a very useful tool, and it may be a critical tool in some larger estates – but for many people, there are other, easier ways to minimize the probate process.

Consider the size of your estate, the breadth of your assets, and what the needs of your family will be after you pass away. Under certain circumstances, a living trust is worth it. Under others, it won’t be necessary. Meeting with an estate planning professional before choosing which direction you are going to take in your estate planning process will help you make the best decision.

Share This Post

Why Our Living Trust Law Firm & Probate Attorneys?

Founded in 1975 by L. Rob Werner and serving California for over 48 years, our dedicated attorneys are available for clients, friends, and family members to receive the legal help they need and deserve. You can trust in our experience and reputation to help navigate you through your unique legal matters.

Whether you need help creating a living trust or navigating probate, our living trust law firm's compassionate team of estate planning lawyers and probate lawyers are here to help you and ready to answer your questions.

Our goal is to make your case as easy as possible for you. Hiring a lawyer can be a daunting task, but it doesn’t have to be. From the moment you contact our firm, through the final resolution of your case, our goal is to make the process easy and understandable. We cannot change the fact that probate is a long and complicated process, but through our Werner Law Firm Difference, we strive to go out of our way to keep you informed of your case through every step of the way. We are constantly refining our processes and procedures for a more streamlined and calm client experience. Our goal is to have you feel like a burden was lifted from your shoulders, and that we made the whole process an easy one

If you're dealing with a legal matter, we urge you to schedule a free initial appointment today and join the many satisfied clients who have contacted Werner Law Firm.

Book an Initial Call Now

Join Our eNewsletter and our California Estate Planning and Probate Blog Digest

Werner Law Firm logo
The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship. See full disclaimer here.
Santa Clarita, CA Office

27433 Tourney Rd, Suite 200
Santa Clarita, California 91355

Los Angeles, CA Office

445 S. Figueroa St., Suite 3100
Los Angeles, California 90071

Bakersfield, CA Office

4900 California Ave, Tower B-210
Bakersfield, California 93309

Newport Beach, CA Office

23 Corporate Plaza Dr., Suite 150
Newport Beach, California 92660

Lancaster, CA Office

626 W Lancaster Blvd.,
Lancaster, California 93534

Pasadena, CA Office

35 North Lake Avenue, Suite 710
Pasadena, California 91101

Simi Valley, CA Office

2655 First St, Suite 250
Simi Valley, CA Office, California 93065

Encino, CA Office

15760 Ventura Blvd, Suite 700
Encino, California 91436

Oxnard, CA Office

300 E Esplanade Dr., 9th Floor
Oxnard, California 93036

Santa Barbara, CA Office

7 W. Figueroa St., Suite 200
Santa Barbara, California 93101

IMS - Estate Planning and Elder Law Practice Growth Advisors
Powered by