How to Execute a Living Trust
A living trust (also known as a family trust) is an effective way to protect assets from taxes and the time and expense associated with probate procedures. There are two significant processes associated with creating a living trust. First, the trust agreement itself must be drafted in accordance with the law of the state in which the trust is established. Second, in order for the living trust to be legally effective, the document must be executed in an appropriate manner. Therefore, if you desire to create such an instrument, you need to understand how to execute a living trust properly.
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Instructions
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Take the living trust agreement to a notary public for the grantor to execute. The grantor is the individual establishing the trust. In all states, the law requires that a living trust agreement be signed in front of a notary public.
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Sign only one original copy of the living trust document. Some people wrongly think it's a good idea to make multiple originals, so the grantor, the trustee and others each have an original. Multiple originals increase the possibility of mischief.
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Obtain the proper notary stamp and signature.
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Take the executed living trust agreement to the trustee named in the document.
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Obtain the signature of the trustee under the clause in the living trust agreement that sets forth the name of the trustee and the fact that she accepts her appointment as trustee. The trustee's signature is done in front of a notary public as well. Ensure that the notary public places his stamp and signature verifying the trustee's signature.
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Tips & Warnings
Properly preparing and executing a family trust is a complicated endeavor. Therefore, you should seriously consider retaining an experienced trust attorney to assist you. You can obtain the names of attorneys who practice in the probate, estate and trust arena through either the state or local bar associations.
Make sure you read and fully understand all the provisions of a living trust (or family trust) before you sign the document.
