How to Create a Living Trust in Washington

A living trust is an arrangement where one person, called a trustee, holds legal title to property for another person, called a beneficiary. When you create a living trust, you generally name yourself as both trustee and beneficiary, maintaining control over all the property put into the trust. You also name who becomes the trustee if you are incapacitated or die and who the beneficiaries are when you die.

The advantage of a living trust is that you can pass property to the beneficiaries when you die, usually without probate. In contrast, if you have only a will, the will must go through probate. However, according to Nolo, Washington State uses a relatively simple probate process, so making a living trust may be more trouble than it's worth, unless you have a substantial estate. However, the other advantage of a trust is that it is private; unlike a will, which is public information.

Instructions

Setting Up a Trust

1. Create the trust document. This document names the trustee and states who will inherit trust property. According to the Washington State Bar Association, any competent adult can be the trustee, including you or a Washington bank or trust company. Also, you can appoint more than one trustee and give each trustee different duties. If you are the first trustee, it's essential to appoint an alternate trustee to take over when you become incapacitated or die.

2. Sign the living trust document in front of a notary public.

3. Transfer your property, such as the deed for your house, the title for your car and your financial accounts, into the trust.

Tips & Warnings

• To ensure the trust document is valid under law, it's a good idea to have legal guidance.

• Any property that is not in the name of the trust is not covered by the trust.

References

• Washington State Bar Association: Revocable Living Trusts
• Nolo: Make a Living Trust in Washington