How to Leave a Trust
Leaving an inheritance for your heirs can provide you with some peace of mind, knowing they will be taking care of after you are gone. One way to leave an inheritance is to create a trust. Creating a trust is not complicated, but it must be done correctly to hold up after you are gone. By creating a trust, you make it possible for your heirs to receive an inheritance without going through probate.
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Instructions
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Find a lawyer who specializes in estate planning, or find a resource to help you make a trust document on your own. For example, books and software programs can walk you through the process of creating a trust document. If you do not want to handle the process yourself, hire an estate planning attorney.
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Determine which property to include in the trust. Many types of property can be placed in a trust, including real estate, securities, cars, personal property and cash.
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List the beneficiaries you want to receive your assets after you are gone. List their names and contact information on the document so the trustee knows how to contact them. List all the property to which each beneficiary is entitled.
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Sign the trust document in front of a notary. Each state has requirements to make the trust legitimate. Some states require a certain number of witnesses to see the signature of the document.
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Transfer the assets into the trust. For example, if you plan to transfer real estate, you must change the name on the deed to the property to the name of the trust. Change the names on any bank accounts to the name of the trust as well.
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Tips & Warnings
Leave your trust documents in a safe place, and notify the trustee of their location. You might even give a copy of the documents to your lawyer.
Putting assets into a trust does not necessarily protect them from creditors or estate taxes. The type of trust you set up determines this. A revocable trust offers no asset protection, while an irrevocable trust does. Irrevocable trusts technically remove property from your estate, which helps protect it for your heirs.
