Setting Up a Trust: When You Should Hire an Attorney

Planning for the future can sometimes feel overwhelming. You might be thinking about your assets, your family, and what happens after you’re gone. 

A trust is a helpful tool for managing property and avoiding unnecessary court procedures. However, the question remains: Can you set up a trust on your own, or do you need a lawyer?

At Blacksburg Law, we recognize the significance of these concerns. Estate planning is more than just completing forms; it is a comprehensive process that accurately reflects your wishes while ensuring the security and well-being of your loved ones. This article examines various aspects of estate planning, drawing upon the extensive experience of our founder, Michael Blacksburg, whose expertise ranges from the execution of last-minute wills to the strategic planning of family business interests.

The Basics of Trusts in California

A trust is a legal arrangement in which one person, the grantor, transfers ownership of assets to a second party, known as the trustee. The trustee holds and manages those assets for the benefit of another person or group, the beneficiaries. There are different kinds of trusts, such as living trusts (which can be changed during one’s lifetime) and irrevocable trusts (which usually cannot be changed once they are set up).

Benefits of Using a Trust

Setting up a trust comes with several advantages:

• Avoiding Court Procedures: Assets in a trust usually do not have to go through probate, which means your family can receive them faster and with fewer costs.
• Managing Your Assets: A trust helps keep your property in order and ensures that your wishes are followed.
• Taking Care of Your Family: Whether you want to provide for your children, a spouse, or other beneficiaries, a trust can specify how and when your assets are distributed.

The DIY Route: Possibilities and Perils

It might be tempting to set up your own trust using online forms and resources. After all, there are many websites that offer documents and instructions. However, while the DIY route might seem like an easy way to save money, there are some serious risks to consider:

• Incomplete or Incorrect Forms: Generic forms may not meet California’s requirements. What works for one state might not work for another, and missing out on the right details can create problems later.
• Failure to Fund the Trust Properly: Setting up a trust means more than just signing a document. You must also move your assets into the trust. Failing to do this correctly can leave your estate in a difficult situation.
• Unexpected Tax Effects: Trusts can have tax implications that aren’t always obvious. Without proper guidance, you might face more taxes than expected.
• Family Disputes: If a trust is not clearly written, it can lead to disagreements among family members. Conflicts over how assets should be divided can add stress during an already difficult time.
• Outdated Documents: Laws change, and a trust created on your own might not be updated as needed. This could cause problems if the trust no longer meets current requirements.

The Advantages of Hiring an Estate Planning Attorney

While it’s possible to create a trust on your own, working with an attorney can make the process smoother and help avoid mistakes. Here are some ways a lawyer can make a difference:

California-Specific Knowledge

An attorney who works with trusts in California knows the local rules and regulations inside out. This is important because California law has its own details that may not be covered by generic forms available online.

Customized Planning

Working with our firm means that your trust will be personalized to fit your situation. Instead of using a one-size-fits-all document, a lawyer can craft a plan that considers your family dynamics and financial goals.

Proper Funding Guidance

One of the key tasks in setting up a trust is making sure that your assets are correctly moved into it. A lawyer can help you list your assets properly and ensure that nothing is missed.

Tax Considerations

There can be hidden tax issues when you set up a trust. A legal professional can help plan your trust in a way that may reduce potential tax burdens on your estate and your beneficiaries.

Reducing the Risk of Disputes

A well-written trust helps prevent misunderstandings among family members. When the terms are clear, there is less chance for conflicts after you’re gone.

Ongoing Support and Updates

Your life and the law both change over time. An attorney can review your trust periodically and make changes as needed to keep it current with your preferences and California law.

Peace of Mind

Above all, having a lawyer work with you on your trust means you can rest easier knowing that everything is done right. This peace of mind is hard to put a price on.

Specific Situations Where an Attorney is Crucial

There are some scenarios where working with a lawyer is especially important:

Complex Estates

If you have a high net worth, own a business, or are part of a blended family, your estate might have multiple moving parts. In these cases, a lawyer can help ensure everything is organized properly.

Special Needs Beneficiaries

Setting up a trust for someone with special needs requires careful planning to avoid disrupting government benefits. A lawyer can create a trust that provides for your loved one without causing problems.

Detailed Distribution Wishes

If you have specific ideas about how and when your assets should be distributed, a lawyer can write clear instructions that reflect your wishes exactly.

Family History of Conflict

If there has been tension among family members, a well-drafted trust by a lawyer can reduce the chances of future disagreements.

Plan for Your Family’s Future: Get Guidance for Your California Trust

Effective estate planning is critical. DIY trusts risk errors and outdated information, whereas our personalized legal support ensures your trust accurately reflects your wishes and protects your family’s future. Based in San Francisco, Blacksburg Law—led by Michael Blacksburg, whose diverse experience informs a friendly, down-to-earth approach—offers clear, simplified guidance. Contact us at 415-508-5600 or visit our website to schedule a free consultation.