How to Prepare to WRITE a Living TRUST

One of the most common estate planning strategies is to write a living trust. A living trust is a legal entity which owns property that is controlled by a trustee (usually the person who created the living trust).

After the trustee's death, the trust distributes the property it owns quickly, directly, privately and simply to the beneficiaries. The most important benefit of a living trust is the avoidance of probate.

In order to prepare to write and create a living trust, many decisions must be made and numerous documents must be located. This information will be given to your estate planning attorney.

Follow these steps to prepare to write a living trust:

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• See RESOURCES below for an easy online process to create a Living Trust

1. ~ List Assets ~
   
   Create a list of all assets including real estate, stocks, bonds, cash, life insurance policies, cars, jewelry, art and any other valuable personal property.

2. ~ Gather Paperwork ~
   
   Gather all ownership paperwork of the assets on the list including real estate titles and deeds, stock certificates, brokerage and mutual fund account numbers, life insurance policies, bank account number and any other documentation related to an asset.

3. ~ Name Beneficiaries ~
   
   The beneficiaries will receive the living trust assets upon death. Named beneficiaries can include family, friends, organizations and charities.

4. ~ Name a Successor Trustee ~
   
   The living trust will name the person creating the trust as the trustee. The person creating the trust will therefore have complete control over the living trust assets just like before the trust was created.
   
   Upon the death of the original trustee, the named successor trustee will pay any debts and oversee distribution of the living trust assets according to instructions. The successor trustee should be chosen with care and be trustworthy.
   
   It is also a good idea to list contingent successor trustees in case the first successor trustee is unable to perform the necessary tasks.
   
   If the trustee should become incapacitated, the successor trustee would handle the trustee's affairs.

5. ~ Contact Attorney or Online Living Trust Service ~
   
   With the above information and the help of an attorney or online legal service, the process to write and create a living trust can be completed.

Resources

• Easy ONLNE process to create a Living Trust