Mistakes Parents Make When Setting up a Trust Fund

No-one sets out to make mistakes when creating a Trust fund for their child.

The aim is to provide for them when the time is right and when you feel they will need it most. In that way, you can be sure you’re providing them with a tangible helping hand after your death.

But getting it wrong can deliver quite the opposite, with administrative issues arising and potential conflicts occurring.

There are some common mistakes made by parents when creating a Trust. We discussed this with our Head of Wills, Probate, and Trusts Team, Rebecca Harbron Gray.

Not relying on legal input when creating a Trust

When creating a Trust, it is important each element is completed satisfactorily and without gaps. If there are, problems can arise quickly when you’re not around to sort them out.

Rebecca said: “To ensure the provisions you need to include are all in the document, and covered by the Trust fund, it’s always advisable to seek out legal guidance.

“A robust draft of your Trust fund is essential to deliver your wishes after you’ve passed away.”

Trustees and replacements

The appointment of trustees is a choice that should be considered cautiously to make sure your fund is handled by people you know and trust.

Rebecca adds: “If you don’t appoint enough trustees or note specific replacements if your original choices are unable to discharge their duties, this can lead to administrative difficulties or delays.

“By having this information in place long before you pass away, this mitigates potential issues.”

Forgetting a letter of wishes

As part of the creation of this fund, you should seek to include a letter of wishes that offers advice to trustees on how and when you want your Trust to be shared out.

Failure to do this can lead to unnecessary complications and disagreements among loved ones further down the line.

Rebecca concludes: “It’s always helpful to have guidance, especially when the powers associated with the fund are discretionary.

“By having a letter of wishes, you have that comforting knowledge that your wishes will be delivered upon and those you wish to receive a share will get just that.”

Why choose Winns?

Don’t leave anything to chance. Rely on the skill and expertise of a team dedicated to Wills, Probate and Trusts, and rely on decades of experience in such matters.

For a no-obligation chat, call our team today.

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