6 Considerations to Make When Naming a Trust
There are considerations to make when naming a trust to ensure you are compliant with the law. Find out more in this guide.
In America, 68% of people don't have a proper estate planning in place. However, leaving any legal document, whether that be naming a living trust or estate planning, is essential if you want to ensure your personal assets are left in good hands.
It's important to note that no law determines how to name a trust, the person that creates the trust has the power to call what they would like.
Even though this might seem easy, there are some aspects to consider when you name a trust. For instance, as essential files are attached to the name, you must make it easily accessible and recognizable.
So, here are six things to keep in mind for naming your trust.
Essential Advice on Naming a Trust
If your assets are worth more than $200,000 you should see an estate planning lawyer to see if creating a living trust makes sense to you. But, the name of the trust is what we're going to focus on in this article as it's a critical aspect.
1. Short and Effective
People often overthink the name and try to create an elaborate title for their living trust in Arizona. However, sometimes the best choice is to go for a short name.
Think of it this way; if you make your name too long, there is a higher risk of making mistakes when handling paperwork and other essential documents. A trust fund name should be short and memorable.
Many name a trust after the creator or the date when the trust was founded. That way, it has a personal association, but it's not overly complicated.
2. Be Careful About Confidentiality
In some cases, people prefer to keep the owner of the trust private. Although this will is not always the case, it's good to be aware when planning a trust.
If you're worried about confidentiality issues, you can think of a name associated with a memory or a location that means something significant. This will prevent people from finding out the identity of the grantor.
And, it will ease your mind when handling important documents and large sums of money.
3. Keep It Separate From Your Business
It's also possible to name the trust after a street address linked to a business. For most people, this is a straightforward solution to naming a trust.
Choosing a name that isn't the same as the business title offers some distance and ensures better privacy. That way, you can keep a business and trust separate from each other.
4. Check the Name Is Legal
One of the most common mistakes people make when naming a trust with Chandler estate planning attorneys is not checking the legal name of someone.
You need to double-check that you have the legal name of a person before naming a trust. Otherwise, it could cause problems with validating the trust and proving identity.
5. Put Family Into the Name
Another excellent idea for naming a trust is including a family name. This is a unique way of remembering someone and keeping them alive in your life. However, that doesn't mean you must use the real family name.
You can always pick a nickname, pet name, or holiday home location. Anything that is personal and means something to you. Our favorite name gives to a trust was "For the Little One" as the parents created the trust for their only daughter.
6. Proofread Spelling
Besides checking that you have the correct legal name, it's equally vital that you proofread spellings. Once you have decided on the name and it has been put on paper, you can't change it.
Therefore, you must proofread the spellings. You can check birth certificates, driver's licenses, or household bills. As long as you are cautious about the spelling, there shouldn't be any problems.
Is a Trust Worth It?
Now, you might be thinking, is it worth setting up a trust?
When you've worked your whole life to save money and invest in the estate, the last thing you want is it to be for nothing. You need to plan ahead and protect your assets by starting a trust.
A trust is not right for everybody, schedule a free consultation with a trust attorney (Click here) to see if a Living Trust is the right instrument to protect you and your family. If you prefer call (480) 565-8020 to schedule today.
One of the main advantages of creating a trust is that the grantor can outline how they would like the estate and other assets to be distributed to beneficiaries.
This gives you more control over what happens to your wealth and who it goes to.
Provide Higher Education
As many grantors have families, preparing financially for their children's higher education is good. Depending on how many children are involved, you can allocate specific amounts to tuition and expenses.
The decision of how much and who receives the money will be dependent on the grantor. This allows you to provide a secure future for your family.
Give Something Back
In addition to creating family trusts, it's also common for people to make their trust charitable. For example, the grantor can leave their estate and assets to a local charity or organization that is important to them.
The idea of leaving money to a foundation that you care deeply about is what drives many people to start a trust. And, it's an excellent reason to do so.
As you can see, setting up a trust doesn't need to be that complicated. The hardest part is choosing a suitable name!
Choose a Name You Can Trust
At Citadel Law Firm, we are ready to help you with naming a trust and dividing assets. We aim to protect your privacy and ensure that the right people receive what they deserve and have been allocated.
However, you need to pick the right name so your estate planning attorney in Chandler, AZ, can get to work on organizing documents and getting things sorted for you.
Having a trustworthy estate planning attorney will save you wasted time and money. After working with hundreds of clients, we know how to handle estate planning and naming a trust.