Making a Living Trust Checklist

Making a living trust without a lawyer is manageable, but you’ll want to make sure you do it the right way. A living trust checklist can help ensure you’ve satisfied the requirements. Read on as we explore how to set up a living trust and the most cost effective ways to do so. 

How to Set up a Living Trust

A living trust can be set up without an attorney by your side. While working with an attorney one-on-one is an option, you can set up a living trust on your own. Taking advantage of online templates can help ensure all elements of a living trust are met. At Trust & Will, you can create a living trust with access to help from our team of experts, all from the comfort of your home or office. We’ll guide you step-by-step as you create a detailed living trust to protect your assets, legacy, and family. 

Before starting the process there are some things to consider.

• Define assets, bank accounts, and anything to be listed in the living trust

• Delegate trustee and beneficiaries 

• Prepare to transfer assets to the trust

• Consider future updates to the living trust (i.e. adding new assets)

How does a living trust work?

A living trust is an estate planning document that allows an individual to control assets while living, yet define how assets are to be distributed in the event of death. This legal document is typically established by a grantor when they are alive, with the intention of appointing a successor trustee to take over when the grantor passes or becomes incapacitated. In comparison, a will is created while one is alive, but does not take effect until the individual passes. 

One of the biggest benefits of a living trust compared to a will  is that it can bypass the probate process. In addition to outlining assets, it can provide detailed instructions for what will happen to assets if you’re deceased or incapacitated. Some assets may remain in the living trust after the grantor is deceased. 

Why do I need a living trust​?

The primary reason to utilize any type of estate plan, including a living trust, is to ensure your legacy is carried out as intended after you’ve passed away. A living trust holds assigned assets that you control while you’re alive, and also appoints a trustee and beneficiaries to take over control if you pass away. 

Creating a living trust ahead of time allows you to provide detail in regards to how assets should be handled when you’re gone. It can help family members or beneficiaries avoid probate, which can be an extensive, expensive, and stressful process, during an already trying time. A living trust is a safe and efficient way of ensuring your assets end up exactly where you’d like them to with little stress to your heirs. 

Living Trust Checklist

Ready to create a living trust? Here are some steps that can help you document a living trust. Below, we’ve created a checklist to help you prepare to create a living trust. When you’re ready to bring your living trust to life, Trust & Will can simplify the process with our online services. 

1. Determine which type of trust you need

Understanding options and how they work is important for your peace of mind. There are two common types of living trusts: revocable and irrevocable. The key difference between the two is the ability to modify the structure, contents, and beneficiaries of the living trust. A revocable trust allows the grantor to make changes to the trust at any time. An irrevocable trust can come with additional protection of your assets from legal ramifications or debt obligations, but limits your ability to modify the content. 

2. Identify who the key parties are

There are four possible parties involved in a living trust: the grantor, the trustee, the successor trustee, and the beneficiaries. Let’s break down these roles. 

• Grantor: The grantor is the individual (you) that created the living trust. 

• Trustee: A trustee is named in a living will to manage the assets. If you have named yourself as the trustee on your living will, as many do, it will be your responsibility to manage the trust until you’ve passed. 

• Successor trustee: A successor trustee would take over the trustee role if the trustee passes away or becomes incapacitated. 

• Beneficiary: Beneficiaries are the recipients of assets. If those parties are minor children, you may appoint someone to manage those assets for them until they are of age. 

It is imperative that you trust the appointed trustee, as he or she will be responsible for managing all your trust assets and following the terms of the trust. You may also want to have conversations with your chosen successor trustee and or beneficiaries so they understand your wishes, or how you wish for things to be handled. 

3. Decide which assets will be left in the trust

To fully benefit from a trust, you may wish to include any assets that would typically be subject to the probate process. Real estate, financial accounts, investments, and valuable items such as jewelry are commonly placed in a trust. To make the process of making a living trust even easier, it is a good idea to make a list of all of the items you wish to include. Then, gather any documents pertaining to the ownership of those items. Trust & Will’s Asset Inventory feature with its Plaid integration makes it much easier to get a clear picture of your estate, including what could go in your trust. 

4. Draft the living trust document

Bringing your intention to life by drafting a living trust takes you one step closer to protecting your legacy and loved ones. Work with a reputable estate planning attorney or service, such as Trust & Will, to ensure that your document complies with state-specific laws. Our guided, intuitive online platform is the easiest way to create a detailed estate plan and keep it up to date. Trust & Will is the smart, affordable, and modern way to create, manage, and update your trust online.

5. Sign and notarize the trust

In order to finalize this document, it needs to be signed in the presence of a notary. In a few states, only witnesses may be required, but this is not the norm. Verify your state's requirements with a legal professional. Trust & Will works with third-party notarization partners to make this step much easier for members.

6. Transfer the property to yourself as a trustee 

After you make a living trust, you must transfer the deeds to any named properties to your trust. Updating deeds to reflect the trust as the new owner of said property is critical. Remember, you can, and many do, name themselves as the first trustee. 

7. Safely store the trust

Keep your legal document safe by storing it in a safe, bank deposit box, or other secure location. Inform your successor trustee of its whereabouts so it can be easily found in the event that you become incapacitated or pass away. When you use an online estate planning service to create your living trust, you can access this document digitally, along with any pertinent information about the covered assets. However, in many states, you still need to have a hard copy of your estate planning documents signed, witnessed and notarized to help ensure they are legally binding. Be sure to keep your hard copy in a safe place as well.

8. Keep your living trust updated

As life changes, your estate plan should too. New additions to the family, marriage, divorce, newly acquired assets, or any other major life event could impact how and what is covered in your living trust. In addition, relationships can change over time, forcing you to reevaluate trustees and beneficiaries. Reviewing your living trust on an annual basis can help ensure it’s up to date and provide details that you’re comfortable with. 

Many people struggle with how to set up a living trust or wonder if it is even the right choice for them. A living trust is not just for the wealthy or those with a long list of assets. Living trusts are for anyone who wants to protect their loved ones by simplifying the estate planning process. Making a living trust can be a straightforward and stress-free process with the help of online estate planning services. With experienced professionals to guide you through the process, making a living trust can pay off for your future generations of loved ones. Invest in peace of mind and create a living trust at Trust & Will today!

At Trust & Will, we keep things simple. You can create a fully customizable, state-specific estate plan from the comfort of your own home. Take our free quiz to see where you should get started, or compare our different estate planning and settlement  options today!

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Trust & Will is an online service providing legal forms and information. We are not a law firm and we do not provide legal advice.