Our office recently had a parent of a client who had a trust written by a non-lawyer “discount” estate planning company. They properly funded the trust by placing their residence into the trust, as shown by the recorded deed. The original documents were apparently given to the parents for safekeeping.
Unfortunately, the parent passed away, and neither our client nor his siblings could locate the trust documents anywhere. After an extensive search, they contacted the non-lawyer estate planning company only to find out that the company did not keep copies of any documents it produced. So there is no trust. No plan as to who is in charge of the estate. No directions as to who gets the house, the car, or other property.
Our client will have to go to probate court to “fix” the problem of the missing trust, and the Arizona laws that apply are for people who do not have wills or trusts. This will be, of course, much more difficult and expensive than trust administration would have been.
The morals of this tale are:
- A trust can be a wonderful money-saving device to help you avoid probate if done properly.
- If you have a trust (or a will), make sure that your heirs know where to find it.
- Use a reputable attorney (not a discount service) who will keep copies of your important legal documents in case they become lost.
Estate planning is not just for rich people.