Top Five Problems with Trusts & Wills

Posted on Feb 2, 2016 in California Probate, California Trusts, California Wills, Estate Planning, San Diego Lawyer | Comments Off on Top Five Problems with Trusts & Wills


Top Five Problems with Trusts & Wills

Today on my weekly radio show with Marty Schneider, “The Retirement Professor“, I answered questions about California estate planning and Living Trusts. Marty asked me what were the most common problems I see with estate planning. I answered him with my list of the top five problems with Trusts & Wills.

I see too many people who do not have proper documents when they become disabled or die. They may have some documents like a Will or Trust, but here are the top five problems with trusts and wills:

Trust Problem #1 – Funding – The Trust is empty – nothing put in the Trust. No property has been transferred into the Trust.

Solution: Funo housend the Trust with Deeds, Power of Attorney, assignments, and transfer documents.

Trust Problem #2Un-Funding – House during refinance was pulled out of the Trust and not put back in. Most lenders will NOT put the house back in the Trust. You need to do it or have it done. If the house is not back in the Trust before you die or lose capacity, the probate court needs to get involved.

Solution: Fund the trust. Deed the house to the trustee of the trust.

Trust Problem #3 – Self prepared documents – not understanding the law and what they really need. Keep in mind that you will NEVER KNOW if the documents are right. When the time comes for the documents to be tested, you will be gone – mentally or physically.

Solution: Do your research, decide, and get the right documents prepared and signed.

Trust Problem #4Failure to plan for disability or incapacity. A disabled spouse is a huge problem, legally, because he or she will not be able to sign necessary documents if the house or assets need to be sold or financed in a pinch.

Solution: Get a Trust and a Power of Attorney.

Trust Problem #5Having no Will or Trust because you can not decide on who to list as personal representatives (Trustee, Guardian, or Executor)

Solution: You just neednowill-intestate-300x198 to decide. The choice will never be perfect, but it will be 100% better than not deciding and leaving it up to a Judge.

The solution to all these top five problems with trusts & wills is understanding the law and your needs. Keep doing your research and ask questions until you understand, then decide and act.

Gary Quackenbush, California Attorney.

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