Online tools and downloadable templates have made it easier than ever for individuals to create legal documents on their own. While this might seem convenient, drafting your own trust without input from a qualified attorney carries risks that often don’t become clear until it’s too late. Trusts are more than just paperwork—they’re legal instruments that must meet specific standards, follow state law, and work in coordination with your full estate plan.
Mistakes made during the planning stage may not surface until the trust needs to function—usually after someone has passed away or become incapacitated. At that point, the consequences of a poorly drafted trust can be serious. Beneficiaries may not receive assets as intended, court involvement may be required, and costly legal disputes may follow.
Common Errors That Lead To Major Problems
One of the most frequent issues with DIY trusts is vague or inconsistent language. Trust documents must be clear about who the beneficiaries are, what they are entitled to, and under what conditions distributions should be made. Without precise terms, trustees are left with too much discretion—or none at all—which can result in conflict, delays, or lawsuits.
Another risk is failing to properly fund the trust. Creating the document is only one step; assets must be legally transferred into the trust. Many people believe that signing the paperwork is enough, but without taking the necessary steps to retitle property, the trust has no control over those assets. This can completely defeat the purpose of having a trust in the first place.
Tax planning is also often overlooked in do-it-yourself trusts. While not all trusts require detailed tax strategies, many do—especially if large sums, real estate, or business interests are involved. An experienced estate planning attorney can make sure that your trust’s taxes are properly handled.
State Laws and Outdated Templates
Many online trust forms are written for general use and don’t reflect the specific laws of your state. Estate planning laws vary, and small differences in requirements can make a big impact. What’s acceptable in one state may be invalid in another. If your trust doesn’t comply with local statutes, it may be challenged or disregarded entirely.
When Problems Lead to Court
One of the most overlooked consequences of a poorly written or improperly funded trust is court involvement. A trust is often created specifically to avoid probate, but when errors exist, the assets may still end up going through the court system. This can cause delays, legal fees, and unnecessary stress for surviving family members. A trust lawyer can help by preventing you ending up in court or representing you should you go to court.
Working With The Right Legal Support
Trust planning is one area where a small mistake can have major consequences. Attorneys like those at The J M Dickerson Law Firm can attest to the value of getting legal guidance from the start. Working with a trust lawyer means more than just preparing documents—it’s about making sure your intentions are clearly and legally carried out, both now and in the future. If you’re considering creating a trust, reach out to an attorney today!
