How to Make a Revocable Trust

Revocable trusts are becoming an increasingly popular way of planning for the timed transfer of funds and assets. By leaving a definite amount of authority in the trust grantor's hands, the revocable trust adds a level of comfort and control to the trust process. Follow these steps to set up a revocable trust if you feel that it's the right trust for you.

Instructions

1. Learn about the specifics of a revocable trust. A revocable trust has lots of advantages: the grantor of the trust remains the trustee (trust manager) and beneficiary of the trust while still alive and it provides a level of finance management without costing your heirs unnecessary estate settlement costs. However, there are also a number of disadvantages, including that the trust does not save estate or inheritance taxes and that the cost of setting up the trust is immediate.

2. Consult with your attorney. An experienced attorney who understands your personal finances is best qualified to advise you on how to proceed with a revocable trust.

3. Draw up the revocable trust forms. The basic forms are fairly standard and can even be downloaded from some websites. Get the proper form, a "Declaration of Revocable Trust," and fill it out with your attorney's counsel.

4. Transfer the funds to the trust. This may sound like an obvious step, but it's actually quite difficult and time consuming. You need to formally transfer all funds and assets while taking into consideration taxes for each account or asset.