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At Herbert Law Office, we know that setting up a living trust is one of the best ways to protect your family and your assets to give your loved ones peace of mind. But even with the best intentions, it’s easy to make mistakes that can derail your carefully laid plans.

Let’s dive into the 10 most common living trust mistakes—and how to avoid them!

1. Not Funding the Trust

You created the trust—that’s great! But here’s the catch: if you don’t actually transfer assets into it, it’s like having a beautiful safe with nothing inside. Be sure to fund your trust by re-titling real estate, bank accounts, and other assets into the trust’s name.

2. Forgetting to Update It

Life happens: marriages, divorces, new children, new assets, new laws. If your trust doesn’t reflect these changes, it might not protect the people you care about most. We recommend reviewing your trust every 3 to 5 years, or whenever there’s a major life event.

3. Choosing the Wrong Trustee

Your trustee has a huge responsibility—they’ll be managing your assets and carrying out your wishes. Choose someone responsible, trustworthy, and detail-oriented. And don’t forget to name a backup trustee!

4. Not Having a Pour-Over Will

Even the best trust can’t cover everything if an asset slips through the cracks. A Pour-over Will catches anything left out of your trust and ensures it’s included in your estate plan. Like a traditional Will, it can also name guardians for any minor children and provide detailed instructions for your funeral and the disposition of your remains.

5. Overlooking Tax Consequences

Trusts can have tax implications—some favorable, some not. Failing to plan for taxes can leave your heirs with an unexpected bill. We’ll help you navigate the rules and make sure your plan is as tax-efficient as possible.

6. Ignoring Out-of-State Property

Own a vacation home or a timeshare in another state? If your trust doesn’t address it, your family could face a complicated Probate case in California, which can tax any land in different states. We’ll make sure your trust covers all your assets, wherever they’re located.

7. Over complicating Things

It’s tempting to create a trust that covers every scenario imaginable. But overly complex trusts can confuse trustees and lead to disputes. Our approach? Clarity and simplicity—because your plan should work when it matters most.

8. Not Planning for Incapacity

A trust isn’t just for what happens after you pass away—it can also protect you if you become incapacitated. Clear instructions for your trustee ensure your assets are managed according to your wishes, even if you’re unable to speak for yourself.

9. Forgetting Digital Assets

Your online life matters too! From social media to email accounts to cryptocurrency, digital assets are an important part of your legacy. We’ll make sure your trustee has the authority to manage your digital world too.

10. Going the DIY Route

DIY legal documents are everywhere these days, but one small mistake can undo all your hard work. Working with an experienced estate planning attorney ensures your trust is legally sound and truly protects what you’ve worked so hard to build.

Let’s Make Sure Your Trust Works for You

Avoiding these common mistakes is the first step toward a living trust that truly protects you, your family and your assets. If you’re ready to create or update your Living Trust, Herbert Law Office is here to help. Our team will guide you through every step—no confusion, no guesswork, just peace of mind.

Ready to get started? Call us at (661) 273-9007 to schedule your FREE consultation.