Do It Yourself: Living Trusts Documents

Trusts and wills concern handing over your assets

Living trusts are becoming increasingly popular tools for planning estates and leaving assets to beneficiaries. In a trust, property is given by a grantor and held by a trustee for a beneficiary. The grantor's property is transferred into the trust while the grantor is alive. The trust can pay income to the grantor while he or she lives and distribute the remaining assets after death.

Instructions

Will or Trust

1. 

   Cash and property are among your assets

   Decide whether you need a living trust in addition to a will. A will designates how your assets are to be passed on after you die. A revocable living trust does the same, but it also controls how your assets and property are handled if you are disabled. Unlike a will, a living trust takes effect while the grantor is alive. A revocable living trust also avoids having to file a will in probate court, a process that is required to prove that a will is legal and valid.

   The grantor may make changes in the revocable living trust, or even cancel it, at any time. The grantor may also be the trustee. In that case, a successor trustee must be named to take over when the grantor/trustee dies.

2. 

   You may need a lawyer's advice

   Get expert advice. Consult an estate planning attorney for the pros and cons regarding revocable living trusts before undertaking one. If you have considerable assets, a living trust may be helpful, but if you have a small estate not subject to federal or state estate taxes, a will may suffice.

   To find a lawyer, you can call your local bar association or check the yellow pages for attorneys specializing in estate planning. Local adult schools often offer classes on estate planning, including living trusts.

3. 

   Computer programs and online sites are sources for legal documents

   Choose an online site. Nolo is an online source for many legal forms, including forms to create a will or a living trust. You must first create an account, then follow the instructions. There are fees for downloading the online living trust form packages. The documents include a property assignment form, certification, revocation and instructions. The site provides step-by-step instructions and online support. Nolo promises to keep your online documents up to date with changes in laws. The Nolo site also uses Secure Sockets Layer (SSL) technology to encrypt information, protecting your security.

4. For a more economical document, computer programs such as MyAttorney Home & Business are also available for preparation of many legal documents, including a living trust and associated bill of transfer, certification, revocation and amendment. Once the program is purchased, the document templates are free of charge.

5. Prepare your document. Name the person or organization who will be the trustee. You must list all your property, including title documents that show ownership, such as real estate, vehicles, and investments. To put a house that you own into your trust, for example, you must sign a new deed transferring ownership to the trust. You also will need a list of beneficiaries and alternates and designation of successor trustees.

   Preparing the document itself can be done in a few minutes, but the actual transfer of property may take weeks if it is necessary to change titles.

Tips & Warnings

• Be careful if you choose a do-it-yourself living trust kit, as they are not designed for specific consumers. Some are worthwhile but others can be useless. If you use an online site, be sure it displays a security symbol (a closed lock or an unbroken key) in the lower right corner of your browser, to ensure that your information is protected.

• Avoid being influenced by aggressive salespeople and over-hyped advertising. Living trusts are not suitable for everyone. You may hear that living trusts avoid estate taxes and the expense of probate, but for most people, estate taxes are not a problem. In addition, taking a will through probate is relatively inexpensive, compared to the cost of using an attorney to prepare a living trust, which is generally more expensive than preparing a will.

References

• Nolo
• AARP
• LawEasy.com
• National Consumemr Law Center

Resources

• National Consumer Law Center
• Nolo sample document