How to Set Up a Revocable Trust
A revocable trust, also known as a living trust, is a legal document that you have prepared that is a way to make sure that upon your death your estate and all assets are transferred to the appropriate beneficiaries quickly and effectively. A revocable trust is also one that you can readily change while you are still living in case you decide to change some of the parameters of your will and asset distributions.
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Things You'll Need
- List of all assets and financial holdings
- Copy of your current will
- Copies of all account information for investments
- Copies of property titles and deeds for all real estate
- Listing of beneficiaries and their contact information
Instructions
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Contact an attorney and schedule a meeting to discuss the option of a revocable trust or living trust. Learn what a revocable trust can and cannot do. Most attorneys offer a free initial consultation for discussing such things as a revocable trust. Ask the attorney if he offers a no-cost consultation. If he does not, ask if the initial consultation fee can be applied to the actual fees associated with having the revocable trust drafted and finalized. Gather all relevant paperwork to take with you to your meeting.
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List all assets, debts and financial holdings. You need to make sure you have information on savings accounts, trading accounts, stock and bond holdings, retirement plans, real estate holdings and all other investment information. Gather information on your outstanding debt as the attorney will need to be aware of both your assets and debt. Get a copy of your current will if you have one as your attorney will need to see this document to help develop the revocable trust.
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Meet with your attorney and take notes about revocable trusts. Your revocable trust will serve as the instructions upon your death as to how your assets are to be divided and the benefit of a revocable trust is that the assets do not have to pass through probate. Make sure you understand the benefits and drawbacks of bypassing probate. Update your will when you have the revocable trust created and understand that you need to have both a revocable trust and will as your will gives instructions about asset division and allocation for items that were not included in the revocable trust.
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Have your attorney prepare the revocable trust and secure a copy for review. Make sure to read the entire document to ensure that all assets are listed and accounted for. Make and request changes and additions as necessary. Schedule a final meeting with your attorney to finalize the paperwork and sign the living trust. Make or have copies of the revocable trust sent to you and place the original document in a safe and secure location. Let interested parties know where the original and copies of the revocable trust are. Update and make addendum's as necessary, mainly when you acquire assets that need to be included in the living trust documentation.
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Tips & Warnings
Make sure to keep all information about your assets in more than one location in the event of a fire, flood or other accident.
Do not list assets that do not belong to you as misinformation will slow down the asset transfer process.
References
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