How to Name a Living Trust
Frequently in creating an estate plan a person executes a living trust. A living trust is a legal document which is usually established to avoid taxation and the probate of a will. (Probate is the process by which a will is filed with the court and property of a decedent is distributed.) This article explains how to name the living trust.
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Instructions
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How to Name a Living Trust
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Compile a list of the property and assets which will be placed in the trust. Consider whether a bank account will be established in the name of the trust. Review any other property and/or assets which will be retitled in the name of the trust. Assess whether a long name, such as "The Smith Family Revocable Trust" would be inconvenient and lengthy, as opposed to a shorter name, such as "Smith Trust." For example, when funding a trust bank account, any checks must be made out to the trust name. If there is a lengthy name, issuance of the checks could be bothersome. Additionally, if real property deeds are going to be retitled, it may be cumbersome to include a lengthy trust name on the deeds.
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Determine who is the trustee of the trust. A trustee is a person who will oversee the trust, thereby potentially taking action pursuant to the trust terms, funding the trust and/or administering the trust. Frequently, the person creating the trust will also serve as the trustee. However, there are instances where there is more than one trustee or the trustee is a different person. In those cases, it is a good idea to consult with this person on naming the trust. Note that it is not imperative to discuss the name of the trust with any other person, but it may be helpful to do so.
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Determine what the final name will be for the trust. Once this has been determined, advise the professional creating the trust. The professional creating the trust will then include the trust name on all required documents.
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Follow through and perform all related tasks, such as creating a bank account in the name of the trust and retitling trust assets.
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Tips & Warnings
While one may seek to create a trust on his own, it is best to discuss creation of a trust with a professional in order to ensure that all legal requirements are fulfilled.
