6 Considerations to Make When Naming a Trust

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.