Here is how to set up a living trust online without an attorney. With this do it yourself guide, you can make your own living trust by using online software.
Are you depressed about how your beneficiaries manage their portion after you? Well, the ultimate solution to the problem is drafting the living trust correctly.
Create a living trust online without an attorney
Constructing a living trust is legal documentation that assigns a trustee who can manage your property after your death. Living Trust is becoming more common, and creating is not that challenging. In recent times, rather than using an attorney, you can use online software or services to draft a living trust.
All you need is to learn how you can create the one with little fuss. Now before moving on, here is the brief explanation of Living Trust.
What is Living Trust?
A Living Trust is a legal document or trust, which is created by an individual’s lifetime where a designated person called trustee is given responsibility for managing the individual’s assets for the benefit of the eventual beneficiary.
You can create a living trust; the first one is revocable, and the other one is irrevocable. A living trust appoints a trusted person as a trustee who can manage and hold the ownership of all your assets after your death.
Different Types of Living Trusts
There are four different types of living trust which can help you in a reasonable estate-planning.
- Revocable Trust – An individual can have control over the assets until he/she is live. These types of assets can help you shift assets whenever you wish too. It is fairly flexible in structure, and you can modify it anytime you want.
- Irrevocable Trust – In the irrevocable trust, you cannot change and revoked the trust once it is created. Creditors can’t access the assets included in an irrevocable trust. The ultimate goal of the irrevocable trust is to provide shelter against the lawsuits. It provides the ideal asset protection.
- Asset Protection Trust – The name itself gives you a basic idea of this type of trust. These types of trust protect trust holder assets from any future attempt by the creditors. In case the holder’s assets got undistributed, it will be returned to the trust holder.
- Charitable Trust – The charitable trust is established to benefit a particular charity or cause. It can help both an individual’s purpose and a significant tax benefit for the trust holder.
Benefits of Living Trust
A living trust holds the assets of the trust holder in trust for his or her benefit. Here are some of the benefits of Living Trust.
a) Living Trust Saves Money
Living trust basically holds your assets better than the will. A living trust can help you save your assets; however, constructing the one is quite an expensive and hectic task to do.
A living trust is indeed the most complex legal documents which need a lot of hard work to draft. Usually, a living trust may help you provide savings for married couples; however, there is no difference in estate and income tax savings.
b) Living Trust Protects your Privacy
One of the benefits of the living trust is that it lets you avoid the probate process. Probate proves the validity of a will. It is basically a document between the exchanging parties and is out of the public record.
No one can find or search the public records to find out the distribution of your assets or estates. On the other hand, a will is a public record, which anyone can access once it becomes public.
c) Living Trust Provides Peace of Mind
Living Trust gives you the idea of how to deal with your assets. It can assist you to prevent from accidentally disinheriting someone. Moreover, it can help you by providing care to your loved ones.
By knowing that your estate is handled precisely as you wish after your death; therefore, it gives you peace of mind. You should have a clear idea and know what is the basic difference between Will and a Living Trust.
Constructing a Living Trust!
Drafting a Living Trust needs a lot of hard work and decision making. So, if you’re confused or not able to think from where you’ve to start, then here is the brief step-by-step guide which can help you make Living Trust.
i) First, decide what type of trust you like to create
It would be helpful if you decided whether you want to create a joint trust or an individual trust.
The only difference between an individual or joint trust is that joint trust or shared trust includes all the property of you and your spouse. While on the other hand, an individual trust only includes your property and assets.
ii) Identifying all your Assets
You need to identify or check all the available assets with a list so that you can decide how to distribute the assets for your living trust.
It’s not necessary that you donate all of your property in the trust. In case of retirement or investment account, you can opt them out of your living trust.
iii) Do all the necessary Paper Work of Assets
You need correct information on all your assets in the trust documents — the people you want to take over the assets after your death.
iv) Choose a Successor Trustee
A successor Trustee is a person who handles or inherits all your property after your death. A trustee is a person who indeed works like a beneficiary; however, it depends on the circumstances of the Living Trust.
v) Drafting Documents of Your Trust
Start by searching forms to draft your trust documents. You can easily find free templates or sample living trusts on the web. Always check whether your form is approved for use in the particular state you’re living.
In case you want to draft the complex or significant assets, then you need a consultant.
Once you sum up all your roles in motion, you’re now all set to create a form. So, you have to choose between the two Irrevocable and Revocable.
- Irrevocable – This type of form cannot be changed once created. It acts as a separate entity from the Grantor, and they are not considered as the owner.
- Revocable – You can change or modify this type of Will anytime. In this, Grantor can also act as the Trustee and make any type of decision about the asset as necessary.
vi) Signing the Trust
Once you’re all set to go, sign your declaration of trust in the presence of a notary public. The responsibility of the Notary Public is to make use that all the documents are signed, and the individuals signing are who they claim to be.
Your trust didn’t finalize until you put all the trust assets on the name of the trust. Make sure to apply for an Employer Identification Number. It is necessary to file a return tax for trust.
So, these are some of the essential steps which you’ve to follow while drafting a Living Trust.
Frequently Asked Questions?
Q.1. What type of property can go under the living trust?
A.1. The property which has the highest financial value can go under the living trust. Real estate, stock, bonds, or mutual funds, company shares, bank accounts, cash, jewelry, antiques, and more are some of the best examples.
Q.2. Who is Grantor?
A.2. A grantor is a person who creates the trust and appoints the trustee to manage all the assets in his absence or after his death.
Q.3. Who is a Trustee?
A.3. A trustee is a person appoints to manage the property for the benefit. A trustee can manage a property in the absence of a grantor and is paid a fee for managing the trust property.
Q.4. Who is the beneficiary?
A.4. A person or group of people for whom the trust is constructed. After the death of the grantor, the trustee has the power to distribute the trust property among all the beneficiaries in accordance.
Q.5. How to describe the property in Living Trust?
A.5. You’ve to describe the assets which you love to transfer to the living trust. You can even include account numbers and serial numbers, as well as a thorough description if possible.
Q.6. Does Living Trust protect assets against creditors?
A.6. Constructing the living trust, especially revocable trust, doesn’t help you avoid creditors. It does not protect your assets from your creditors.
Constructing a living trust is not as complicated as it looks. In fact, with tools like Quicken WillMaker, it becomes pretty easy to draft a living trust legal documents. Apart from software, you can quickly hire an expert or a professional which can help you in writing a living trust.
You can also download online forms as well as a notary public to construct legal living trust documents. In this article, I have shared some of the tips and methods with which you can create a living trust by own with almost zero margins of error.
Are you looking to construct a living trust?
If you’re among those who are regularly looking for the best and straightforward ways to create a living trust, then do let us know. For any queries or suggestions, leave a comment below.