A trust is used to make sure that your assets are distributed to your chosen beneficiaries upon your death. A revocable trust means that you can alter the trust while you are still alive. This document can help streamline the probate process and might help reduce inheritance taxes for your heirs. A revocable trust is sometimes called a living trust.
Writing a Trust
How do you write a trust document? You do not need to have an attorney to write a revocable trust if your situation is relatively straightforward. The most important part is that you clearly define living trust terms, so your heirs can avoid lengthy probate proceedings. You must make sure the document is complete and follows an acceptable format for your state.
To set up a trust, you must transfer your property to the trust. The title for your property will be in the name of the trust and will no longer be in your personal name. You can define living trust assets and those that you want to retain in your personal name. You must also follow the proper filing procedures and have the document notarized.
There are differences between what a will can do and what a trust can do. Some of the characteristics that define living trusts are that you can keep your personal documents private after your death and you can avoid conservatorship. You cannot name an executor, name guardians for your children or appoint a manager for your children’s property. With a trust, you can name trustees, but you cannot do this with a will.
What is an example of a living trust? One of the best ways to draft your own trust is by finding an example online.
One of the most important parts is the attached Schedule A. Without this component, the trust is incomplete and cannot be enforced. You can find a revocable trust Schedule A template and adapt it to your assets and needs. Make sure the living trust Schedule A example is similar to your own circumstances.
Listing Your Assets
How do you list property in a trust? The revocable trust schedule A template lists your assets. It must list the addresses of real estate, include bank account numbers and contain an inventory of household or personal items that you want to be included in the trust. The best way to see how to list them is to find a living trust Schedule A example and follow the format.
How to Update Trust Schedule A
One of the benefits of a Schedule A, as opposed to listing your assets in the body of the trust, is that you can easily amend Schedule A as your needs and circumstances change. Can you amend a trust without an attorney? Yes, you can amend the trust by preparing a new Schedule A, removing the old one and attaching a new one. As the settlor or grantor of the trust, you have the right to amend the trust.
The most important thing to consider is that the revocable trust Schedule A template you choose must list as much detail as possible about your assets. Also, some states, such as California, are considered community property states.
If you are putting both community and personal property into the trust, you will need a separate Schedule A for community property and a separate one for personal property. Make sure the living trust Schedule A example you choose is appropriate for the state in which you live.
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Writer Bio
Adam Luehrs is a writer during the day and a voracious reader at night. He focuses mostly on finance writing and has a passion for real estate, credit card deals, and investing.