I want to share a real-world example of one of the most common trust mistakes I see in estate planning—and how it turned a seemingly simple plan into a legal and emotional mess. This story is a perfect reminder that when it comes to trusts, the devil is in the details. And if you don’t plan for every possibility, your loved ones may be the ones left to clean it up.
The Trust Mistake That Sparked a Family Dispute
A few weeks ago, I met with a woman—let’s call her Susan—who was dealing with a serious problem. Her father had passed away about a decade ago and had left behind a trust. It granted a life estate in the family home to his second wife—Susan’s stepmother—and left a small sum of money for Susan to handle the property’s taxes and insurance.
Fast forward ten years, and that money is gone. Susan has been footing the bill for taxes and insurance out of her own pocket, while her siblings haven’t contributed—and the stepmother isn’t helping either.
The big issue? The trust was too vague. It didn’t spell out who should pay for what. That’s one of the classic trust mistakes—assuming that future responsibilities will work themselves out without clear instructions.
When State Law Fills the Gaps—And Creates New Problems
Since the trust didn’t specify financial responsibilities, we had to turn to Georgia law. According to state law, the life tenant (in this case, the stepmother) is responsible for paying the property taxes and maintaining insurance. But here’s the kicker—she hadn’t been doing that. In fact, she dropped the homeowner’s policy years ago and switched to a renters policy that only covers her personal belongings.
That’s a huge problem, especially considering she’s also listed as a co-trustee. As a trustee, she had a fiduciary duty to protect the property for the ultimate beneficiaries—Susan and her siblings. This oversight could have major legal implications and is yet another example of how trust mistakes can compound over time.
Now the stepmother has hired an attorney, and what should have been a straightforward situation is headed to court.
Trust Mistake #1: Too Simple for a Complex Situation
So how did we get here? The original lawyer who drafted the trust tried to keep things simple—too simple. The document avoided probate, which is a good thing, but it didn’t provide enough guidance for the years that followed. It simply granted a life estate to the surviving spouse and passed everything else to the children.
That’s not enough—especially in blended families, where relationships and expectations may already be strained. In this case, the lack of specificity around financial responsibility is what triggered the current dispute. It’s one of the most preventable trust mistakes, and yet I see it all the time.
Trust Mistake #2: Not Planning for the “What If’s”
When creating a trust, it’s essential to think long-term. What happens if the money runs out? What if the person living in the house can’t afford maintenance? Who pays for major repairs? These are the kinds of questions a good trust should answer. Leaving them out is just inviting trouble later on.
And don’t forget the smaller details. Who mows the lawn? Who’s responsible for minor repairs like a broken window? These things may seem trivial when drafting the document, but trust me—they matter.
Avoiding these trust mistakes comes down to thorough planning and honest conversations. Tell your attorney exactly what you want to happen. Be clear about your goals, your concerns, and your family dynamics.
Trust Mistake #3: Failing to Communicate Your Intent
A trust isn’t just a legal document—it’s a message to your family. It tells them how you want your assets handled, and what your priorities are after you’re gone. If you want to make sure your spouse is taken care of but also protect your children’s inheritance, say that. Make it clear.
A lot of trust mistakes happen simply because the person creating the trust assumes their intentions are obvious. But if it’s not in writing, it’s open to interpretation—and conflict.
Detail Matters More Than You Think
So many people come into my office asking for a “simple” estate plan. And while simplicity can be good in some cases, it often leads to trust mistakes when it oversimplifies complex family or financial situations. The truth is, simple isn’t always smart. In this case, a few extra paragraphs in the trust—spelling out who’s responsible for what—could have saved everyone time, money, and stress.
Final Thoughts: Avoiding Costly Trust Mistakes
If you’re setting up a trust, or reviewing one you already have, make sure it’s not just legally sound but also practically useful. Think through the possibilities. Consider your unique family situation. Ask yourself: “If I were gone tomorrow, would this document make things easier or harder for my loved ones?”Avoiding trust mistakes starts with communication and ends with clarity. Take the time to tell your story in your trust—and make sure it’s one your family can follow without ending up in court.
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