Reasons to review trusts for effectiveness
Some estate owners in Connecticut may find that their trusts do not fulfill their intentions. This could be because those intentions have changed or the documents were not correctly set up in the first place. For example, a trust might be set up incorrectly if the attorney did not understand the family's wishes. In other cases, a trust is written in a way that's confusing and does not effectively convey its purpose. For these reasons, people may want to review any trusts they have and make sure they do what they were created to do.
Some trusts may no longer be effective because they were created with fairly narrow parameters and it isn't possible for them to accommodate changes. Others could have been created when tax laws or other laws relating to estate planning were different. In the present, there may be better solutions.
A lack of tax efficiency or an inability to provide sufficiently for family members could be blamed on bad trusts. Other types of trusts might be set up in a way that leads to ineffective governance. In all of these cases, it could be necessary to revise the trust documents.
Trusts can be powerful tools in estate planning. For example, a trust could be used to care for a relative who has special needs. The relative might get benefits based on their assets. By placing an inheritance in a trust, the relative's rent or other necessities can be paid for without endangering access to benefits. For relatives who are not good with money, trusts may be set up to only make distributions at certain intervals or at a trustee's discretion.