Trusts are a dependable way to protect your family, friends, and property after you die. But there are certain rules and guidelines that must be followed to implement the trust according to the law. Because people understand that these rules are set in place to protect the trust, they may believe ‘everything is taken care of’ after a loved one dies. However, this isn’t always the case, and information you have about trusts may be inaccurate. It’s important to be prepared and informed in order to deal effectively and appropriately with the implementation of the trust. Here, we’ll discuss three myths about trusts you should know about regarding this implementation.
Understanding the Myths About Trusts
Here, we correct three myths about trusts and their implementation, so you have some important and helpful information if you are a trustee or beneficiary:
Myth # 1: The trust will take care of itself because it passes to beneficiaries outside of probate.
Truth: Trustees have to work to make sure that the trust is properly implemented. While the trust assets do pass to beneficiaries outside of probate, the process needs assistance from a diligent trustee.
Myth #2: As a trustee, you have to manage the trust alone.
Truth: As a trustee, it is your legal responsibility to manage the trust. However, you have the right to consult with an attorney, an accountant, and others to help you make decisions. You do not have to manage the assets or the administration on your own.
Myth #3: There won’t be problems administering the trust if it is for the benefit of family members.
Truth: Unfortunately, many families disagree about and fight over the management of trusts. If you’re a trustee or a beneficiary, you should be prepared for difficulties in the administration of any trust, including a family trust.
Trusts can be effective ways to pass property to loved ones or to charities. However, it is important to know the truth about how they work. Please share this blog post on Facebook or Twitter to help dispel the myths described above.