What Is Required for a Living Trust?
A living trust requires five things. A trustor, a trustee, one or more beneficiaries, intent and property.
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General
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A living trust is fairly easy to create. It simply requires that you have intent to create it, you put property in the trust and you designate parties involved in the trust.
Intent
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There must be an intent to create the trust. The person who creates the trust, called the trustor, must manifest this intent somehow, either through verbal expression or in a written document.
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Trust Property
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A trust does not exist until property has been transferred to the trust. Many types of property, like personal property, such a jewelry or television sets, can be transferred to the trust simply by declaring the property to be in the trust. Other types of property, like real estate, require the execution of documents of title or conveyance to put the property in trust.
Beneficiaries
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The purpose for setting up a trust is to provide some type of benefit to one or more beneficiaries. You have to name these beneficiaries before the trust is affective.
Trustee
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The trust must appoint a trustee who invests, manages and distributes the trust property according to the terms of the trust.
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