One of the most common documents someone may choose to make when dealing with their assets is a living trust or a revocable trust. The trust’s creator can determine who they wish to distribute assets to and how the trust should distribute them. A revocable trust is particularly popular because the creator of the trust can make changes at any point as the circumstances in their life changes (children are born, they marry, or they divorce). In fact, the creator of the trust can name themselves as the first trustee in line so that they can continue managing their assets before an injury or illness incapacitates them or before they pass away. If you are interested in creating a living trust, you will find more information below and answers to frequently asked questions.
Do Living Trusts Avoid Probate?
Yes, a living trust can avoid probate. In fact, one of the reasons many people choose to create a living trust over a will is so their family does not have to deal with the probate process after they pass away. One of the benefits of a will is that the testaor can name someone as the guardian of their minor children, but if your main goal is to avoid probate, a living will is a good option.
Is It Free To Create One?
It is not free to create a living trust, but depending on how you go about creating it will determine how much you spend. For example, if you choose to create a living trust on your own, there are many reputable websites that can lay out your plan and what you need for under $100. If, on the other hand, you prefer to have the help of an attorney who has created living trusts before, you will be paying whatever their fees are, which will vary from firm to firm.
What Is the Process Of Making a Living Trust?
If you are planning to create your own living trust or if you want to understand the process that your lawyer goes through, there are a few steps that are necessary during its creation. The trust should include:
- Your name. As the grantor or the trustor, you must have your name.
- The person you assign as trustee. If you decide to make yourself the first trustee, you also put your name here.
- The successor trustee’s name. When an illness incapacitates you or you pass away, you want to ensure there is someone next in line that you trust to manage your assets. Their name goes here.
- Names of your beneficiaries. They will receive assets and property. Further, the name of someone who will manage any property that you choose to leave to minor beneficiaries.
Additionally, a notary public must be present when you sign the living trust.
Creating a living trust does not have to be hard, and you can choose to do so on your own. Or, you can get the help of an living trust lawyer Sacramento, CA relies on who has created living trusts before and knows the ins and out of what should be present in the document. Speak with an attorney about creating a living trust today.
Thank you to our friends and contributors at Yee Law Group for their insight into estate planning and information about living trusts.