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While trustees may temporarily be able to delay trust distributions if a valid reason exists for them doing so, they are rarely entitled to hold trust assets indefinitely or refuse beneficiaries the gifts they were left through the trust.

Is it better to put assets in my child's name or in a trust? The short answer is no! It is generally a bad idea to do this because this gives them partial legal ownership if your property. This is a common question and we want to give you the necessary information so you can make an informed decision. _________

Rigidity: Family trusts are often inflexible, making it difficult to alter the terms once they are established. This rigidity can be problematic if family circumstances change, such as in cases of divorce, remarriage or changes in financial status.

Individuals may find it challenging to keep up with the constant updates and changes required, leading to potential confusion and complications down the line. Another aspect that draws complaints is the impact of transfer taxes and the need for refinancing when assets are transferred into a living trust.

Usually that entails amending the trust through a separate written document signed by the settlor and delivered to the trustee (who are usually the same person). This document must be created and executed like the original trust, generally before a notary. It should clearly state the desired changes.

Revocable living trusts do not offer estate tax advantages because assets in the trust are part of the grantor's estate at death. This can result in significant estate tax liabilities, especially for large estates. Additional strategies like gifting or charitable donations may be necessary to manage estate taxes.

Limited Asset Protection: While it provides privacy, a living trust may not shield assets from creditors or lawsuits as effectively as an irrevocable trust. Funding Challenges: Transferring assets into the trust can be overlooked or require constant updates as financial situations change.

Some of your financial assets need to be owned by your trust and others need to name your trust as the beneficiary. With your day-to-day checking and savings accounts, I always recommend that you own those accounts in the name of your trust.

Revocable living trusts offer great flexibility but do not offer protection from creditors on their own. A grantor can also invest in asset protection insurance to help shield their revocable trust assets, but the trust itself does not offer these protections specifically.