A trust is very beneficial; setting one up can allow you to avoid probate and distribute your assets more effectively. You may also need to set up a trust for a loved one with special needs. However, doing so requires that you set the trust up correctly, so it is legally valid. There are several mistakes you need to avoid when setting up your trust.
How Probate Works
Probate is an often-complex legal process that involves distributing someone's estate after they die in accordance with their will or applicable laws if there was no will. A trust attorney can assist you in setting up your trust, so it is valid. The attorney will help you understand the legal formalities you need to follow to ensure that the trust's creation follows the requirements of your jurisdiction.
Compliance with the Trust Agreement
When you have set up a trust agreement, you must comply with the trust agreement. For example, you must manage the assets properly. You must maintain accurate and complete records of your transactions. If you do not keep the correct documents, you'll not know if the trust is being managed correctly.
Paying Your Taxes
After you have created the trust, you must file tax returns and other reports that are required. Otherwise, you may face penalties. Also, not filing the required taxes can make managing your trust more difficult. Also, if your trust is not treated as a separate entity, it is more likely to be taxed.
Your probate attorney will also guide you through obtaining the necessary court approvals. Then, you will be able to distribute the trust.
The Jurisdiction of the Probate Court
The probate court has jurisdiction over the estate until it can be closed, usually through the distribution of assets and finalizing all debts the decedent owes. This requires much legal documentation and other necessary steps to fulfill the wishes specified in their last will or according to applicable laws.
How a Probate Attorney Can Help
Working with a probate attorney will give you peace of mind knowing that your assets will be distributed in a manner in which you intend to avoid mistakes that can lead to your trust not being considered valid. A probate attorney will also save you time and money as it guides you through the probate process. Once you have set up the trust, you'll know it will fulfill its purpose, and everything will be in order.
For more information, contact a trust attorney near you.