The Cooling-Off Rule And The Living Trust

As you might already know by now, there is no single and uniform approach to creating a living trust. There is no cookie-cutter approach. This is because laws vary from state to state, and living trust needs vary from person to person. Thus, be wary of lawyers that offer you a one-size-fits-all system, as there are some estate planning devices might not be necessary to your individual situation.

Here are some tips to consider before you set up a living trust:

Do not be pressured into buying estate planning plans and tools that you don’t really need. If you’re creating a living trust, consider only those documents that effectively go with the living trust. Also, keep in mind that some set-ups that may work for other people’s living trusts may not work for you. Just because they’re there, it doesn’t mean you have to buy them.

State laws generally require that lawyers draft your living trust. Thus, your choice of the right, competent attorney is very crucial. Take the time and effort to research on his background and expertise in handling living trusts to avoid headaches in the future.

Do not just rely on everything your lawyer says. Do your homework too and try to find out everything about living trusts as much as you can.

Ensure that your living trust is properly funded for it to work. If you fail to do this, your living trust will be considered void and the state will then take over all your assets and properties and will take to task the responsibility of determining which goes to your beneficiaries.

Keep in mind that the AARP does not endorse any kind of living trust product. Thus, beware of lawyers and estate planning groups that they have the backing of the AARP.

The Cooling Off Rule

Whenever you buy a living trust, you have to demand that the seller give you a written contract that you have the right to withdraw or cancel the transaction within three business days. A certified and legal living trust arrangement should give you the right to change your mind given a set period of time. Two copies of this written statement should be made – one for you and one for the company or seller to keep. You should also have a receipt and a copy of the contract you made, with the right date, signatures, contact information. Your living trust’s seller should also not question your reasons for canceling. It is your every right to change your mind as you wish and you do not have the responsibility of giving him an explanation. You just have to make sure that all these are ironed out before you sign the trust and all the necessary withdrawal documents are in place.

If you’re still dubious about the way your living trust is being handled, report the situation to the Better Business Bureau immediately. There is one in every state so this shouldn’t be a problem.