Skip to content
  • Call 24/7 (602) 910-4068
Contact Us
  • 24/7

(602) 932-3187

estate planning law firm
  • Home
  • Start Here
    • Becoming a Client
    • Our Story
    • Our Approach & Values
    • Meet the Team
    • Client Testimonials
  • PROTECT MY FAMILY
    • Estate Planning
    • Wills and Trusts
    • Power of Attorney
    • Deeds & Real Estate Transfers
  • Specialized Planning
    • Minor Children
    • Special Needs Trusts
    • Asset Protection Planning
    • Irrevocable Trusts
  • Elder Care
    • Long term Care
    • Medicaid (ALTCS)
    • Guardianship
  • Probate
    • Do I Need Probate?
    • Avoiding Probate
    • Trust Administration
  • Business Planning
    • Business Formations
    • Business Succession Planning
    • Operating Agreements
    • Employment Agreements
  • Resources
    • Estate Planning Blog
      • Estate Planning
      • Elder Law
      • Probate
      • Business Succession
      • Guardianship
    • Videos & Recordings
    • Seminars & Webinars
    • Free Estate Planning Masterclass
    • Educational Library
    • Estate Planning Resources For Professional Advisors
    • FAQs
    • Media Room
  • Contact Us
    • Schedule Strategy Session
    • Office Locations
  • Home
  • Start Here
    • Becoming a Client
    • Our Story
    • Our Approach & Values
    • Meet the Team
    • Client Testimonials
  • PROTECT MY FAMILY
    • Estate Planning
    • Wills and Trusts
    • Power of Attorney
    • Deeds & Real Estate Transfers
  • Specialized Planning
    • Minor Children
    • Special Needs Trusts
    • Asset Protection Planning
    • Irrevocable Trusts
  • Elder Care
    • Long term Care
    • Medicaid (ALTCS)
    • Guardianship
  • Probate
    • Do I Need Probate?
    • Avoiding Probate
    • Trust Administration
  • Business Planning
    • Business Formations
    • Business Succession Planning
    • Operating Agreements
    • Employment Agreements
  • Resources
    • Estate Planning Blog
      • Estate Planning
      • Elder Law
      • Probate
      • Business Succession
      • Guardianship
    • Videos & Recordings
    • Seminars & Webinars
    • Free Estate Planning Masterclass
    • Educational Library
    • Estate Planning Resources For Professional Advisors
    • FAQs
    • Media Room
  • Contact Us
    • Schedule Strategy Session
    • Office Locations

The Biggest Mistakes Made with Trusts

Serving Clients in the Gilbert, Arizona Area

The Biggest Mistakes Made with Trusts
  • April 21, 2023
  • Asset Protection, Estate Planning, Trust Administration, Wills & Trusts
Gilbert Arizona estate planning attorney

BY: Jake Carlson

Jake Carlson is an estate planning attorney, recognized business leader, inspiring presenter, and popular podcast host. He is personable and connects immediately with others. A natural storyteller, he loves listening to your story and exploring what matters most to you.

Get To Know Jake
Please Share!
Facebook
Twitter
LinkedIn
Email
Mistakes that are usually ugly, often costly and sometimes fatal – at least to an estate plan.
  • Scroll Down to Read Article

The Dallas Morning News’ recent article entitled “Owning your trust: Avoid these five common trust mistakes” explains these big mistakes frequently made with trusts.

Mistake 1: Failing to fund the trust. This involves transferring assets into the trust and managing assets with the trustee. It also makes the assets subject to the trust’s terms. A trust without assets is a worthless piece of paper.

Mistake 2: Placing your homestead into the trust. For example, a homestead designation in Texas carries several benefits, like creditor protection, tax exemptions and bankruptcy protection. Those are lost when you put your homestead into a trust, unless it is a “qualifying trust.” If your homestead has a mortgage, transferring it into a trust may cause a default. A mortgage company may also refuse to refinance an existing mortgage or extend new financing on a homestead that is in a trust.

Mistake 3: Funding the trust with a vacation home. This can be a headache for the trust’s beneficiaries. Most of us don’t leave enough money in the trust to maintain the home in perpetuity. Your children and their spouses will fight over holiday usage. It ends up being an expensive albatross. If you decide to keep the property in the family, ask an experienced estate planning attorney about a family limited partnership or an LLC. However, before you take this step, ask your children if they want to keep it.

Mistake 4: Failing to understand the trust document. While most trusts are long, boring and contain provisions that make absolutely no sense to anyone but the IRS, if you rely on a trust for your financial future and legacy, you must know what it says and does.

Mistake 5: Failing to review the trust annually. A lot can change in a year, like assets, financial conditions, births, deaths, divorces, marriages, etc. These may require changes to your trust.

Reference: Dallas Morning News (March 12, 2023) “Owning your trust: Avoid these five common trust mistakes”

PrevPreviousTransferring Real Estate to Children
NextProtecting Inheritances in a Blended FamilyNext
Subscribe!

Recent Posts
  • Resources for Children with Developmental Disabilities
  • Protecting Your Business with Life Insurance
  • Managing a House After a Relative’s Death
  • How Does a No-Contest Clause Protect Your Will?
  • How to Talk with Children About a Grandparent with Dementia
Categories
  • Advanced Directives
  • ALTCs
  • Alzheimer's Disease
  • Asset Protection
  • Business Formations
  • Business Succession
  • Charitable Planning
  • Dementia
  • Elder Law
  • Estate Administration
  • Estate Planning
  • Estate Tax
  • Guardianship
  • Life Insurance
  • Medicaid
  • Medicare
  • News
  • Power of Attorney
  • Probate
  • Retirement
  • Social Security
  • Special Needs
  • Trust Administration
  • Uncategorized
  • Wills & Trusts

Contact Us

All fields marked with an “ * ” are required

Practice Areas

Conservatorship Lawyer Mesa, AZ
End-Of-Life Planning Lawyer Mesa, AZ
Estate Planning Lawyer Mesa, AZ
Guardianship Lawyer Mesa, AZ

Wills And Trusts Lawyer Mesa, AZ
Living Will Lawyer Mesa, AZ
Business Formation Lawyer Mesa, AZ

Estate Administration Lawyer Mesa, AZ
Asset Protection Lawyer Mesa, AZ
Living Trust Lawyer Mesa, AZ

estate planning law firm
Facebook-f Twitter Linkedin-in Youtube Instagram Rss

Our Mesa Office

2500 S Power Road Bldg 14
Suite 132
Mesa, AZ 85209

Phone Number: (602) 910-4068

Our Gilbert Office

1425 S. Higley Road #106
Gilbert, AZ 85296

Copyright © 2025 – LifePlan Legal AZ. All rights reserved. Some artwork provided under license agreement. Privacy Policy | Disclaimer | Sitemap