Creating a trust is a significant step in estate planning, designed to protect your assets and ensure your wishes are carried out. Choosing the right trust lawyer is crucial to this process. Asking the right questions upfront can help you find a qualified professional who understands your needs and can guide you through the complexities of trust law. This article provides a comprehensive list of questions to ask a trust lawyer before hiring them, ensuring you make an informed decision.
Table of Questions to Ask a Trust Lawyer
| Category | Question | Importance |
|---|---|---|
| Experience & Expertise | What percentage of your practice is dedicated to trust law? | High: Indicates their level of focus and expertise in this specific area. A higher percentage suggests greater experience with trust-related matters. |
| How many years have you been practicing trust law? | High: Provides insight into their overall experience and familiarity with evolving trust laws and regulations. | |
| Are you certified as an Estate Planning Law Specialist? | Medium: Certification demonstrates a commitment to specialized knowledge and a higher level of competency, although not all excellent trust lawyers have this certification. | |
| What types of trusts do you specialize in (e.g., revocable, irrevocable, special needs)? | High: Ensures they have experience with the specific type of trust you need. Different trusts serve different purposes, and expertise varies. | |
| Have you handled cases similar to mine? | High: Assesses their familiarity with the specific complexities and challenges your situation may present. Ask for examples (without revealing client confidentiality). | |
| Understanding Your Needs | What are the potential benefits and drawbacks of creating a trust for my situation? | High: Demonstrates their ability to analyze your specific needs and provide tailored advice. Shows they are considering all aspects, not just the advantages. |
| What other estate planning tools should I consider in addition to a trust? | Medium: Indicates a holistic approach to estate planning, considering wills, powers of attorney, and healthcare directives. | |
| How can a trust help me minimize estate taxes? | Medium: Important if estate tax minimization is a goal. They should be able to explain relevant tax laws and strategies. | |
| How can a trust protect my assets from creditors or lawsuits? | Medium: Relevant if asset protection is a primary concern. Understanding the limitations and possibilities is crucial. | |
| Process & Communication | What is your process for creating a trust? | High: Provides insight into their workflow, timeline, and how they involve you in the process. |
| How often will we communicate, and what is your preferred method of communication? | High: Sets expectations for communication frequency and methods (e.g., email, phone calls, in-person meetings). | |
| Will you be the primary attorney handling my case, or will other attorneys or paralegals be involved? | High: Clarifies who will be responsible for your case and allows you to assess the team's qualifications. | |
| How long does it typically take to create a trust? | Medium: Provides a realistic timeline for completion, although this can vary depending on the complexity of the case. | |
| What are the ongoing responsibilities of a trustee? | High: Ensures you understand the duties and obligations involved in managing the trust after it's created. | |
| Fees & Costs | What are your fees, and how are they structured (e.g., hourly, flat fee)? | High: Provides clarity on the cost of their services and how they will be billed. |
| What is included in your fee (e.g., drafting the trust document, meeting with you, answering questions)? | High: Clarifies what services are covered by the fee and avoids potential misunderstandings later on. | |
| Are there any additional costs I should be aware of (e.g., filing fees, notary fees)? | High: Ensures you are aware of all potential expenses associated with creating the trust. | |
| What is your payment schedule? | High: Clarifies when payments are due and how they are to be made. | |
| References & Reputation | Can you provide references from past clients? | Medium: Allows you to get feedback from others who have worked with the attorney. Be aware that attorneys will only provide references from satisfied clients. |
| Are you a member of any professional organizations (e.g., National Academy of Elder Law Attorneys)? | Low: Membership indicates a commitment to continuing education and professional development. | |
| Have you ever been disciplined by the state bar association? | High: Important to know if there have been any ethical or professional conduct issues. You can also check this information online through the state bar's website. | |
| Post-Trust Creation | Do you offer ongoing services to help with trust administration? | Medium: Helpful if you anticipate needing assistance with managing the trust in the future, especially after the grantor's death. |
| What is your role if there are disputes among beneficiaries? | Medium: Clarifies their approach to resolving conflicts and whether they can provide legal representation in such situations. |
Detailed Explanations of Questions
Experience & Expertise:
- What percentage of your practice is dedicated to trust law? This question helps determine how focused the lawyer is on trust law. A higher percentage suggests greater experience and expertise in this specific area.
- How many years have you been practicing trust law? This provides insight into the lawyer's overall experience and familiarity with the evolving trust laws and regulations. More years of experience usually translate to a deeper understanding of complex trust-related matters.
- Are you certified as an Estate Planning Law Specialist? Certification demonstrates a commitment to specialized knowledge and a higher level of competency. This certification often requires passing a rigorous exam and meeting specific experience requirements.
- What types of trusts do you specialize in (e.g., revocable, irrevocable, special needs)? Different trusts serve different purposes, and expertise varies. Ensure the lawyer has experience with the specific type of trust you need. For example, a lawyer specializing in special needs trusts will have a different skillset than one focusing on revocable living trusts.
- Have you handled cases similar to mine? This assesses the lawyer's familiarity with the specific complexities and challenges your situation may present. Ask for examples (without revealing client confidentiality) to gauge their experience.
Understanding Your Needs:
- What are the potential benefits and drawbacks of creating a trust for my situation? This demonstrates the lawyer's ability to analyze your specific needs and provide tailored advice. A good lawyer will consider all aspects, not just the advantages, and will be transparent about potential drawbacks.
- What other estate planning tools should I consider in addition to a trust? This indicates a holistic approach to estate planning, considering wills, powers of attorney, and healthcare directives. A comprehensive estate plan often involves multiple tools working together.
- How can a trust help me minimize estate taxes? This is important if estate tax minimization is a goal. The lawyer should be able to explain relevant tax laws and strategies, such as using a bypass trust or a qualified personal residence trust (QPRT).
- How can a trust protect my assets from creditors or lawsuits? This is relevant if asset protection is a primary concern. The lawyer should understand the limitations and possibilities of asset protection trusts and other strategies.
Process & Communication:
- What is your process for creating a trust? This provides insight into the lawyer's workflow, timeline, and how they involve you in the process. Understand how they gather information, draft documents, and ensure the trust is properly funded.
- How often will we communicate, and what is your preferred method of communication? This sets expectations for communication frequency and methods (e.g., email, phone calls, in-person meetings). Clear communication is essential for a smooth process.
- Will you be the primary attorney handling my case, or will other attorneys or paralegals be involved? This clarifies who will be responsible for your case and allows you to assess the team's qualifications. Understand the roles and responsibilities of each team member.
- How long does it typically take to create a trust? This provides a realistic timeline for completion, although this can vary depending on the complexity of the case. Factors influencing the timeline include the complexity of your assets and the lawyer's workload.
- What are the ongoing responsibilities of a trustee? This ensures you understand the duties and obligations involved in managing the trust after it's created. The trustee has a fiduciary duty to act in the best interests of the beneficiaries.
Fees & Costs:
- What are your fees, and how are they structured (e.g., hourly, flat fee)? This provides clarity on the cost of their services and how they will be billed. Common fee structures include hourly rates, flat fees for specific services, and a percentage of the estate value.
- What is included in your fee (e.g., drafting the trust document, meeting with you, answering questions)? This clarifies what services are covered by the fee and avoids potential misunderstandings later on. Ensure you understand what is included and what may incur additional charges.
- Are there any additional costs I should be aware of (e.g., filing fees, notary fees)? This ensures you are aware of all potential expenses associated with creating the trust. These costs can include court filing fees, notary fees, and appraisal fees.
- What is your payment schedule? This clarifies when payments are due and how they are to be made. Understand the payment schedule and any late payment penalties.
References & Reputation:
- Can you provide references from past clients? This allows you to get feedback from others who have worked with the lawyer. Be aware that lawyers will only provide references from satisfied clients.
- Are you a member of any professional organizations (e.g., National Academy of Elder Law Attorneys)? Membership indicates a commitment to continuing education and professional development.
- Have you ever been disciplined by the state bar association? This is important to know if there have been any ethical or professional conduct issues. You can also check this information online through the state bar's website.
Post-Trust Creation:
- Do you offer ongoing services to help with trust administration? This is helpful if you anticipate needing assistance with managing the trust in the future, especially after the grantor's death. Trust administration can involve complex legal and financial tasks.
- What is your role if there are disputes among beneficiaries? This clarifies their approach to resolving conflicts and whether they can provide legal representation in such situations. A lawyer experienced in trust litigation can be invaluable in resolving disputes.
Frequently Asked Questions
- What is a trust? A trust is a legal arrangement where one party (the trustee) holds assets for the benefit of another party (the beneficiary). It's a common tool for estate planning, asset protection, and managing wealth.
- Why do I need a trust lawyer? Trust law is complex, and a qualified lawyer can help you create a trust that meets your specific needs and complies with all legal requirements. They can also guide you through the process of funding and administering the trust.
- How much does it cost to create a trust? The cost varies depending on the complexity of the trust and the lawyer's fees. Simple trusts can cost a few thousand dollars, while complex trusts can cost significantly more.
- What is the difference between a revocable and irrevocable trust? A revocable trust can be changed or terminated by the grantor (the person who created the trust), while an irrevocable trust cannot be easily changed or terminated.
- What is a trustee? A trustee is the person or entity responsible for managing the trust assets and distributing them to the beneficiaries according to the terms of the trust document.
Conclusion
Choosing the right trust lawyer is a crucial step in ensuring your estate planning goals are met. By asking the questions outlined in this article, you can gain a better understanding of the lawyer's qualifications, experience, and approach to trust law. Thoroughly evaluating your options will help you find a lawyer who is the right fit for your needs and can guide you through the process of creating and managing a trust effectively.