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Have you ever wondered if your Living Trust is doing what it’s supposed to do? Many people assume their estate plan is set once the documents are signed, but life’s changes require more than a one-time review. We at Cardon Law understand how important it is to make sure your living trust is up to date with your life. A successful living trust is reviewed and renewed, but unfortunately many families are forced to endure the discomfort and pain of court because their documents have been left untouched. Estate planning is not just about creating any ordinary will or trust but about making a plan that grows with you and your family’s needs and wants. These steps can help you and your loved ones not feel clueless during your passing or during a life changing accident or health issues. You want there to be clear instructions about painlessly honoring your wishes. For this simple reason, we are offering a free seminar to help you and everyone in your life determine whether your living trust is built for the long run.
The Problem with “Set It and Forget It” Estate Plans
Based on attorney Jeff Cardon’s 20+ years of experience, the unspoken adage that once someone has created a Living Trust, the worry is over has proven to be a misconception. Just as life changes over time, so too should your living trust be updated with changing laws and circumstances. Just because a car runs smoothly when you’re driving it off the lot does not mean it’s in perfect condition or will not need to be maintained. Just like a car, delayed up-keep could leave you stranded.
Celebrity Wendy Williams offers an illustrative case of what could go wrong. In 2022, Wendy’s health issues became a major public focus after her bank froze millions of dollars in her account. Fearing she was mentally incapacitated, a probate was opened to provide a financial guardian to manage Williams’ finances (this would be referred to as a conservator in Utah). Several individuals made a claim to be her guardian against her wishes until ultimately an unnamed guardian was installed to manage her finances. Her unfortunate case brings to light the importance of thorough estate planning. While there are many challenges in a situation like this, the central issue of the case could have been avoided with a simple document drafted prior to her alleged incapacity. Careful estate planning is crucial to avoid hairy disputes such as this.
We understand the unplanned can and will always happen in life; taking a fall or getting in an accident can come when you least expect it. If you’re unable to manage your personal affairs due to health issues or not having the right documents in place, the court may appoint a legal guardian or conservator. And the worst part? It might not be someone you would have chosen. Estate planning is more than just creating a will, it is about making a thought out, legally binding decision about how YOU want your affairs managed if you are ever unable to do so yourself. We make sure you’re prepared for situations like this, so you don’t have to put your family through the stress of a court process. Don’t wait until you’re in a situation like Wendy Williams, get yourself protected now. We want to help you avoid the kind of mess that can come from not planning ahead. Estate planning is for everyone, no matter where you are in life. Having clear instructions in place will make things easier for you and your loved ones, no matter what stage you’re at.
Let’s say you love traveling with your family, exploring new places with your spouse, and now bringing your little ones along for the ride. One day, you and your spouses decide to leave the kids with your in-laws while you take off for a week-long trip. But while you’re away, an unexpected situation happens, and both of you end up in the ER, in a coma. Without the right documents in place, who steps in to make decisions for your kids or for you and your spouse, when you’re unable to speak for yourselves? Instead of putting your family through the stress of court battles and uncertainty, imagine how much easier it would be if you had a living trust in place to make sure your wishes are carried out exactly how you want.
Things like getting married, going through a divorce, having kids, retiring or facing big financial changes should be the perfect time to get your estate plan in place with us. When you come to our office, we want you to really understand the risks of not reviewing or updating your plan regularly. If you put it off, you could end up facing probate court issues, inheritance disputes, or even tax problems that could cause a lot of stress for you and your loved ones. The longer you wait, the harder it could be to deal with, and we’re here to make sure that doesn’t happen.
Life Changes and Estate Planning — Why You Need to Keep Up
As we have previously mentioned, life can sometimes be unexpected. This is why we argue that each life state matters, especially when creating an estate plan. If you’re single and have already established a living trust, what possibly worked during your time of being single or even developed as a newlywed may completely not apply once you have children, your children are out of the house, perhaps you’re planning for the next generation or you have growth in your assets. These are moments and life states that should be a reason to make sure to keep your estate plan updated. There are so many other common reasons, as we mentioned it could be that you just got married and need to add them to your estate plan, or let’s say you were once married and are now legally divorced. There are many reasons to update your estate plan. Let’s say you have been married for a few years and you and your partner have a baby or decide to adopt. What if you and your spouse have inherited millions, you will need to update your estate plan to make sure your assets are protected as well. Or your health could change, perhaps a disability, illness, aging, or in the unfortunate event there is a death of a spouse or family member; all reasons to update your estate plan. We cannot stress enough that estate plans should be adaptable to life’s unpredictable course.
Not All Living Trusts Are Created Equal
Time to break the hard news to you—not all living trusts are created equal. What may work for your neighbor may not work for your situation. This is why we take the time to sit down with you and understand what you need and are looking for. This way, we can instruct you on how to best protect and carry out your wishes. It is important to understand some of the legal terms we have been throwing around such as “living trust”. A quick refresher, we talked about a Living Trust in a previous article, a Living trust is a document that is legally signed which allows you to place your goods, such as property, investments, and even your bank accounts, into a trust during your lifetime. You can still manage and distribute your assets during your lifetime, but after your passing or if you somehow are incapacitated, a designated successor trustee can manage and distribute your assets as you wish and as you instruct. A Living Trust can help avoid probate and give you control and flexibility. Likewise, it gives you a chance to keep your affairs private. The key point is that it helps keep your family harmony as you make clear what you would like to happen and prevent disputes among heirs and family members.
In other words, a Living Trust is important because it will protect your assets and honor your wishes while ensuring your family avoids the complications and stress of probate (court). Since all living trusts are created differently, some trusts offer better asset protection, tax savings, and even more flexibility than others. There are many possible risks associated with a one-size-fits-all approach. A basic generic trust might not be enough to protect your family and your assets from creditors, future tax burdens, and even lawsuits. Shortcuts might benefit you in the short term but in the end, could negate the hard work you’ve done and even limit your family’s benefit.
Why You Need to Attend Cardon Law’s Estate Planning Seminar
Mistakes like these can be avoided. If only you had a guide that would sit down and explain in depth these legal terms and processes. But wait, you do! We have our seminar “Is Your Living Trust a Ticking Time Bomb?”, which we hold every month. These seminars are a place where you and your spouse, friends, or family will learn why your living trust may fail to protect your family from losing their inheritance to divorce, greedy in-laws, etc. You will also learn why your trust plan needs special provisions so you and your family will not feel burdened by nursing care bills. You will learn all this and much more. You’ll end up learning what type of trust best fits your needs. We will provide you with resources that you can carry out with yourself. On top of that, we offer free consultations and other deals just for attending. Don’t make the mistake of believing that all living trusts are the same. Maybe you are being tempted to trust that your well-built Living trust vehicle will never need maintenance but remember All Living Trust plans are not all created (and maintained equally).