Setting up a living trust is one of the most powerful steps you can take to secure your legacy and protect your loved ones from unnecessary stress, court costs, and delays. But just like any estate planning tool, a living trust must be set up and maintained properly to do its job.

At the Law Office of J. Marc Montijo, Ltd., we’ve helped countless Tucson families avoid costly errors by ensuring their living trusts are structured to serve their specific needs.

Here are the most common mistakes people make when setting up a living trust—and how to avoid them.

1. Failing to Fund the Trust

Creating a trust is only the beginning. You must also transfer your assets into the trust—this includes real estate, bank accounts, investment portfolios, and more. If your assets aren’t properly titled in the name of the trust, they may still go through probate, defeating the purpose of the trust.

Solution: Work with an experienced attorney who will help you retitle your assets and ensure everything is correctly documented.

2. Choosing the Wrong Trustee

Your trustee will be responsible for managing your assets, either upon your death or if you become incapacitated. Appointing someone who lacks the experience, judgment, or willingness to handle that responsibility can create complications.

Solution: Choose a trustee who is financially savvy, trustworthy, and able to act in the best interest of your beneficiaries. In some cases, a professional fiduciary or institution may be more appropriate.

3. Not Updating the Trust After Major Life Events

Marriages, divorces, births, deaths, or major financial changes all impact your estate. If your trust doesn’t reflect your current wishes or family structure, it can lead to confusion, conflict, or unintended outcomes.

Solution: Revisit your trust regularly with your attorney—especially after major life events—to keep it accurate and aligned with your goals.

4. Assuming a Living Trust Covers Everything

While living trusts are versatile, they don’t replace all your estate planning needs. You still need a will (to handle assets not in the trust), powers of attorney, and healthcare directives.

Solution: Build a complete estate plan, not just a trust. A comprehensive package ensures you're protected during life and after.

Let’s Get It Right the First Time

Avoiding these common pitfalls starts with choosing the right legal guidance. At the Law Office of J. Marc Montijo, Ltd., we take the time to understand your unique needs, walk you through every step, and help you establish a solid, legally sound trust.