Trusts have existed for centuries to reduce estate taxes, manage personal assets, and control property ownership. But creating a trust isn't as simple as writing it down and signing it. Several layers of complexity are involved in establishing a trust that must first be understood before implementation. While trusts are fairly common, hiring an attorney to help you create one is not something you want to skimp on. Here is why.
Provide Legal Protection
Although it is possible to create a trust without the assistance of an attorney, the probability that you will miss some aspects and wind up with a defective document is high. What's more, if you are creating the trust on your own, you will have no legal protection if the trust is found to be invalid.
Someone could challenge the fiduciary arrangement in court based on the argument that it doesn't meet the appropriate legal requirements. And should you decide to represent yourself, there's a high possibility that you might lose the case. To avoid the hassle, you should hire a legal representative to help you create a valid trust and provide you with legal protection should the need arise.
Choose a Suitable Inheritance Strategy
In addition to providing legal protection, hiring an attorney will also ensure you get professional help choosing the best inheritance strategy. You may have certain strategies in mind, such as how and when you want the assets in the trust to be distributed. A trust attorney can help you confirm that what you are trying to do is legally viable.
For example, let's say you have a child who is disabled, and you want to make sure that they are taken care of if something happens to you. In this case, your attorney will recommend you include a special provision in the trust to ensure your child receives their inheritance as soon as you pass away.
Provide Sound Asset Management Advice
Involving a legal representative when creating a trust ensures you receive sound asset management advice. The attorney will be dedicated to helping you create a fiduciary agreement consistent with your goals and values.
If, for instance, you want to ensure that your children are taken care of but also want them to learn financial responsibility, your trust will be designed to allocate your children a controlled amount of money over time, so they don't blow their inheritance in a couple of months.
Several layers of complexity are involved in establishing trust, and by hiring a trust attorney, you ensure the fiduciary document is legitimate and enforceable.
For more information, contact a local trust lawyer.