For example, because a trustee is unsupervised by the court, a dishonest or irresponsible trustee can sometimes abuse his position. He may invest your assets recklessly, make decisions that only benefit him, or neglect to manage property.
Some trustees refuse to answer reasonable and important questions. Hiring a lawyer knowledgeable about trusts is sometimes needed to resolve these problems.
Sometimes, too, a trustee finds that the responsibilities of managing property are too much of a burden and wants relief. Among other hassles, a trust can generate a shocking amount of paper work for him.
An unwilling trustee is not a good situation for either the trustee or the beneficiary, and changes to the trust may be needed.
A trust can “go wrong” in other ways. In rare cases, the cost of the trust exceeds that of a will, although the reverse is more often the case. The cost difference varies according to the estate.
A living trust, by the way, does not eliminate the need for a will, so you will be dealing with at least two documents. A competent estate planner will advise you of the documents you need, so that their absence does not become a problem for your beneficiaries.
Another problem is that if you seek a loan, lenders may not want to lend to a trust. They may stipulate that your property must first be removed from the trust before they will lend to you.
All of these problems cause frustration and anxiety. Fortunately, a trust can usually be changed or even canceled. If you want to fund your trust with real estate, you can manage the property for awhile. Then, if you later change your mind, you can get it back.
Usually a trust becomes irrevocable only after you die or become disabled, but there is an exception. If you make the trust irrevocable from the beginning, you will lose the option of changing or canceling it. This is done to avoid taxes or to protect property from creditors.
Fortunately, if you are about to create a trust, you have control.
If you need advice about creating your trust, or if you are having trouble with an existing trust, seek legal counsel immediately. Call the Law Office of Richard Nevins and set up an appointment to learn your options; you do not have to make these important decisions alone. Fill out our form. A knowledgeable, experienced attorney will give you expert advice, so that you can begin your estate planning with confidence.