Creating a Living Trust
This playbook outlines the steps involved in setting up a living trust to manage and protect your assets. It is designed to ensure an easier transfer of these assets after one's death, avoiding the often lengthy probate process.
Step 1: Research
Understand the benefits and limitations of a living trust compared to a will, and decide if it is the right option for your estate planning needs.
Step 2: Inventory Assets
Make a comprehensive list of all significant assets you would like to include in the trust, including real estate, bank accounts, investments, and personal property.
Step 3: Choose Trustee
Select a trustworthy and reliable person or a financial institution to serve as the trustee, who will manage the trust's assets as per your instructions.
Step 4: Create Trust Document
Draft the trust document with the assistance of an estate planning attorney to ensure it meets legal requirements and fully captures your wishes.
Step 5: Sign and Notarize
Sign the trust document in front of a notary public to make it legally valid. Ensure all necessary parties are present and the signing is according to state laws.
Step 6: Fund the Trust
Transfer ownership of the listed assets to the trust. This may involve changing titles and updating beneficiary designations to reflect the trust as the new owner.
Step 7: Store Documents
Keep the original trust document and related paperwork in a secure location. Inform the trustee and relevant parties where these documents are stored.
General Notes
Legal Advice
Consult with a qualified estate planning attorney to ensure that the trust is created correctly and that it aligns with state laws and estate planning goals.
Review Periodically
Review and update your living trust periodically to reflect changes in your assets or personal circumstances.