What are the drawbacks of a living trust? Well, the biggest drawback that I see the living trust is that it’s a complicated document. And then once you sign it you have to rely upon what the lawyer tells you. It says, rather than you’re trying to understand 16 or 17 pages of legal jargon. I always ask folks why they want to set up a trust. And if the simple reason for this is to avoid probate, I go through and I ask them, well, what assets do you have? And that’s simply a matter of real property, some bank accounts and a brokerage account. Those can be, we can avoid probate through titling. If you just have a, a couple of beneficiaries, if you wanna set up a trust because a person is disabled and you want them, a special needs trust.
So they don’t receive the money. Well, that’s a good reason to set up a living trust. Another good reason to set up a living trust is if you need to protect the beneficiaries from spending all the money, if they’re, either have some addiction problems, or they’re not good money managers, you want their money to be held until they reach a certain age, although they may receive the income. One of the other disadvantages of a living trust is the cost to set them up in that’s usually there more expensive. I would also do not unless under severe duress ever set up a joint trust between husband and wife. I still do, but it’s usually it’s not needed particularly to avoid probate. And also you don’t want to put at your homestead property, your home into a joint trust. It creates problems as far as when the first spouse passes away. So if you have any questions about setting up a trust, give me a call and (727) 847-2288.