I cannot stress the importance of funding your Living or Revocable Trust enough! A trust is a great tool for passing a legacy on to your children or beneficiaries when you pass away, however, the Trust only covers property actually funded (transferred) to it.
I am in the process of probating an Estate for a deceased person here in southwest Oklahoma. The individual was drawn in by an Oklahoma City attorney who created a “cut-rate” living trust for him and his wife. The problem with a cut-rate trust is that you get what you pay for and what the couple received is just a skeleton. The Oklahoma City attorney did not follow through with any funding of the Trust or keep in contact with the client to know that their living situation had changed. After the creation, the Oklahoma City attorney put all of the burden on the client to transfer assets, and it never was completed.
So what does all of this add up to? I am having to complete a public probate for the couple and will incur around $3,000 in expenses for the client. All of this is necessary because the “deal” received from the Oklahoma City attorney of a trust for $1,500 wasn’t that good of a deal, after all. In addition, the cut-rate trust does not have any planning to provide for mom now that she is in a nursing home, so there will be additional costs to get it up to date.
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What lesson is there to be learned here? The better value is to stay local and have a qualified estate planning attorney complete your Trust. You should know who you are dealing with and you should know what you are getting as part of your plan. If you have any questions on your plan, please come see me now and get them addressed, so your children do not run into the same hassle as these new clients.
I want to leave you with the quote from the son of the couple mentioned above. He said, “I guess that Oklahoma City attorney just wanted a check [from mom and dad], and when she got it she was through with us. I wish we would have come to you, because now we understand all she was after and we should have done it right and local from the start.”