Are All Living Trusts Created Equal? NO!

Of course all living trusts aren't created equal.  Are all cars the same?  What about hamburgers?  How about mortgage loans?  The question seems silly in reference to cars and hamburgers, right?  But until the real estate market dove off a cliff, most Americans thought loans were just boilerplate legal documents with different interest rates.  Why anyone would believe such a myth with hundreds of thousands of dollars at risk is beyond me.  But just like loans, many Americans believe the same thing about living trusts.  And just like loans, this mistake could cost hundreds of thousands, if not millions of dollars in losses.  All living trusts are NOT created equal.  First, we must understand what a living trust is to appreciate the differences between them.  A "living" trust is simply a trust that created while you are alive.  It is that simple.  All living trusts have this one fact in common.  After that, however, remember this truth--all living trusts are unequal.  Some attempt to solve tax problems.  Solve attempt to solve probate.  Some attempt to solve probate and taxes.  Some attempt to prevent distribution disputes.  Some attempt to provide asset protection for your heirs.  Some attempt to address disability issues.  Some are flexible, while others have very rigid rules.  Remember, a trust is nothing more than a tool to achieve a goal.  The important thing is, did you discuss all of these options and more with your lawyer?  Did you know there are about 10 different ways to set up the estate tax provisions alone?  Do you know if you have an AB trust?  An ABC trust?  A Disclaimer trust?  A QTIP Trust?  A Marital Exemption Trust?  A special needs standby trust?  Did your attorney discuss you family situation with you?  The financial and marital stability of your heirs?  I think you get my point.  Living trusts are wonderful estate planning tools that, if used correctly, can provide incredible benefits such as tax and probate savings as well as asset protection and peace of mind.  However, one size does not fit all and the drafting of a living trust, or any trust for that matter, should never be left the jack-of-all trades attorney.  If you choose this method, your heirs may be in for the shock of their lives.  All trusts are not created equal, just like cars, hamburgers and mortgage loans.  Remember this when thinking about a living trust.  Don't make the same mistake many made about loans.