No. A trust is a voluntary estate planning option, and may not be appropriate for every estate.

Any type of asset may be held in trust, including cash, real estate, life insurance policies, securities and more. If you’re unsure as to whether an asset would be appropriate to include in a trust, or if another type of estate planning strategy would be better, talk to us.

A living trust becomes effective during the lifetime of the person who created the trust. The creator of the trust can alter or revoke the living trust during his lifetime. A living trust will generally eliminate the need for conservatorship and the trust assets generally pass outside of probate proceedings. This is because the living trust usually contains instructions for managing trust assets during the creator's lifetime and instructions for distributing trust assets upon the creator's incapacity or after his or her death.

A trustee is the person designated in trust document by the creator of the trust (settlor) to carry out the terms of the trust..

A successor trustee is a person nominated to take over the trustee role, should the original trustee refuse be unwilling or unable to serve.

A trustee has several important legal duties:

• Administering the trust according to its terms
• Investing trust assets appropriately (when applicable)
• Making discretionary decisions, such as when to distribute discretionary funds
• Preparing records, statements and tax returns as required by law
• Keeping records on file
• Communicating with beneficiaries regularly, including providing the aforementioned statements and records

Accepting the responsibility of trustee is a serious matter. Not everyone has the time, skill or inclination to administer a trust properly—and you could be personally liable if something goes wrong. A trustee often hires legal counsel to advise them as to their obligations and duties and those fees are usually paid as a trust expense.

Similarly, when choosing a trustee, select someone who is organized and trustworthy, as this person will be the legal owner of trust assets until they are distributed.

Trusts can be contested, just like wills. An interested party may contest a trust on the basis of undue influence, mental incapacity, or failure to comply with legal and procedural formalities or other reasons.

If someone contests a trust, they have to file a claim to request any contested parts of the trust are stricken. The burden of proof is on the contesting party to show that the trust is invalid due to one or more legal miscues.

When you’re involved in a contested trust action, it’s best to work with an experienced probate litigation attorney.

If both the trustee and successor trustee die, and there are no other named “backups” in the trust documents, the probate court will appoint someone else to oversee the trust.