How to Make a Trust Vs. Will
Engaging in a little bit of estate planning can help ensure that your assets get to the proper place when you die. When it comes to estate planning, you have the option of creating either a will or a trust. While the process of creating both wills and trusts are similar, they do not have exactly the same requirements. Regardless of which one you choose to use, it is important to know the basics of how they are both created.
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Instructions
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Creating a Will
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Get a resource that can help you create a will. You have the option of using a computer software program, a book or a premade form or of hiring a lawyer.
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List the property that you want to include in your will. This should include any assets you want to pass on, including real estate, cars, stocks, bonds and cash.
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Name the beneficiaries who you want to inherit your property. Include information about the beneficiaries such as their full names, addresses and phone numbers. List the property that each person should inherit.
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Choose a guardian for your minor children. If you have kids under the age of 18, you have the option of choosing a legal guardian for those children with your will. This guardian will take care of your kids when you die.
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Include the name of the executor of your will. The executor is the individual who will distribute your property and pay your debts after you are gone.
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Sign the will in front of the appropriate number of witnesses for your state. Some states require two witnesses, while others require three to make sure that the will is valid.
Creating a Trust
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Obtain assistance in creating your trust. This can be done with a book or a software program or with the help of a lawyer. When creating a trust, you need to make sure that you are doing it according to the laws of your state so that it can be upheld in court after you are gone.
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List the items that you want to have included in your trust. Just as in a will, you may include items such as real estate, vehicles, investments and cash.
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Name the beneficiaries who will inherit the property in your trust. List their personal information so that the trustee can find them when you are gone.
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Choose the trustee for your trust. While you are alive, you may act as the trustee, but when you are gone, a secondary trustee will be required. List the name of the secondary trustee and then notify that person. Once you choose the trustee, notarize the trust document. This involves signing the document in front of a notary public.
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Transfer the assets you want to pass on into the ownership of the trust. This involves changing the names on deeds to property, the titles on vehicles and the names on bank accounts.
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Tips & Warnings
If you are unsure of the rules for your state, consult with an attorney. Even though you may not want to pay for an attorney, it will provide you with peace of mind knowing that your property will go to the right person. Otherwise, someone could contest your will or trust and cause problems.
