Many people turn to online templates or DIY estate planning tools to create a revocable trust. By doing so, they hope to save time and money. Although going the DIY route may seem convenient, a poorly drafted trust can lead to serious legal and financial issues. Florida has specific laws that must be followed for a trust to be valid. A single mistake can thus result in assets going through probate or ending up in the wrong hands.
Below are some of the mistakes you can make when you draft a revocable trust without legal guidance.
Creating a trust is just the first step. If assets aren’t legally transferred into the trust, they may still go through probate. Many DIY trusts are incomplete because people forget to retitle real estate, bank accounts, or investment funds in the trust’s name.
Online trust forms may not provide the flexibility needed to distribute assets properly. Vague language or missing details can cause confusion and lead to family disputes. If an important heir is accidentally left out or a designation is unclear, the courts may have to step in.
Florida law has strict execution requirements for trusts. A document that isn’t signed, witnessed, and notarized correctly may be ruled invalid in court. If that happens, assets may be distributed under state intestacy laws instead of the trust’s terms.
One of the main reasons people create a revocable trust is to avoid probate. However, an improperly executed trust may not prevent probate at all. If assets remain in the individual’s name instead of the trust, they may still go through the court process, defeating the purpose of the trust.
Fixing errors in a DIY trust can be expensive. Families often end up in court, hiring attorneys to resolve disputes or correct mistakes. The cost of litigation is often much higher than the cost of having an estate attorney draft the trust correctly the first time.
DIY mistakes can lead to serious legal problems that cost families time and money. Contact Schnauss Naugle Law today to create a legally sound estate plan that protects your assets and beneficiaries.
