Trusts can be valuable estate planning tools for individuals who want to protect their assets and privacy from the costly and time-consuming probate process. Part of creating a trust is picking a name to distinguish it by. Banks and institutions will use this name to identify your assets, but you should also maintain some anonymity to protect your family members’ privacy.
If you are struggling to develop a good name for your trust, you should consult with legal professionals who work with trusts regularly. They can advise you on the best names and help you avoid mistakes that could have serious repercussions.
Why Is Naming a Trust Important?
Naming a trust is essential because it is how your assets will be identified. Your trust name will appear on loans, at the bank, and in other required paperwork. You don’t want to choose an overly long name because it may be hard to sort through your assets in the future. You could also create confusion at financial institutions if your name doesn’t adequately convey the purpose of the trust.
Picking your trust’s name is worth taking some time to consider. While you can change the name in the future, you would also have to re-classify every item in the trust under the new name, which can be challenging.
What Are Some Aspects of a Successful Trust Name?
The following are some tips to help you create a successful name for your trust:
- Keep it short and simple – Long trust names can be confusing to banks and make it harder to keep track of your assets.
- Don’t get too creative – Many states have laws against using names that sound like financial businesses. You want your trust name to convey the trust’s purpose rather than being misleading.
- Don’t just use your name – Some lawyers will recommend using your name as your trust name. However, it is obvious why this can backfire if the purpose of the trust is to protect your privacy.
Should You Hire Our Trusts Attorneys?
Creating a trust is a big step in estate planning. Picking the trust name is just one aspect of this complicated process, including what kind of trust you need, who the trustee will be, who will benefit from the trust, and under what terms your assets will be distributed.
If you need help making the perfect trust for your needs or any other estate planning matters, please call us. We have helped countless clients like you create trusts that help their families now and in the future. We will be more than happy to design your trust and advise on the best name for your trust fund. Call today at (516)-928-6594.