How to Set Up Trusts
If your estate is substantial, there are a number of reasons to set up a trust, including avoiding probate, providing for a minor, ensuring your estate is managed properly if you become unable to do so and avoiding taxes or the many legal issues that may be associated with a will. A trust allows you to dictate exactly how you want your funds to be dispersed and to whom. With a living trust, you can transfer ownership of your assets over your lifetime.
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Instructions
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1
Determine the type of trust that you need. A revocable living trust allows you to change the terms of your trust or take back your assets. An irrevocable trust cannot be changed once it is created.
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Designate your beneficiaries and decide what assets to include in your trust. You can create more than one trust if you intend to divide your assets among two or more people.
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3
Select a Trustee. If you are the Trustee, select a successor Trustee. This is the person responsible for executing your trust. This may be a close family member or friend or your bank. The family member or friend should be someone that you trust and expect to outlive you. You may choose more than one Trustee.
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Locate a lawyer that you trust. If you don't have anyone in mind, contact your state bar for guidance. Have the lawyer help you write up your trust.
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Fund your trust. Do this by starting the transfer of your assets. These may include deeds to real estate, titles, bank accounts, bonds and certificates.
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Tips & Warnings
If you have assets in more than one state, keep in mind that the laws on trusts vary from state to state.
When looking for someone to help you draw up your trust, beware of those with titles such as "trust specialists" and "certified planners." They may just be looking for access to your financial information in order to sell you products or services.
