Can Anyone Prepare a Revocable Trust?
Developing an estate plan is important if you want specific things to happen after you die. Common plans include writing a basic will or using a trust. While no law prohibits a person from writing his own trust, doing so often results in problems in the future. You might be better off getting an attorney's help.
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Definition
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There are several types of trusts. A revocable trust is, as its name suggests, revocable during the lifetime of the grantor (the person who created the trust). This type of trust is also called a "living trust." With estate plans, as a general rule, trusts all do the same thing: allow the grantor to retain control over his property even after he passes away. A trust is a legal entity that acts as a warehouse for the grantor's property. The beneficiaries of the trust (named by the grantor) only gain access to the "warehouse" according to the instructions set forth in the declaration of trust. The trustee---who is often the grantor while the grantor is still living---is the gatekeeper to the trust and must act according to the terms in the trust document.
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Nothing prevents a person from trying to create an estate plan or drafting a revocable trust. However, creating a trust involves drafting legal documents and maintaining the trust. When the average person tries to create a declaration of trust, she may not know the terms to use or the relevant laws that apply to trusts in her state. Further, a clause written by a layman may not be construed in the way she wanted. These problems can be avoided by hiring a professional.
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Maintenance
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Unlike a will, a revocable trust requires more than simply writing the document. Trusts must be "funded." Using the example of the warehouse as the trust, an empty warehouse is basically meaningless. The owner of that warehouse must put property into it in order to make the warehouse effective. The process of funding a trust involves adding property to the trust. This means that the person must actually change title to pieces of real property he owns into the name of the trust. It also involves changing accounts into the name of the trust. All of this involves maintenance and, without professional help, the layman can run into trouble.
Complete Estate Plan
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Other issues with a person writing her own revocable trust involve tailoring the estate plan to the person's needs. Simply drafting a revocable trust and funding it and maintaining it may not be everything a person needs. For example, if a person has minor children, the trust form does not allow for provisions that appoint a guardian for those children. Further, after a person dies, the property that has not been added to the trust must be dealt with. Most complete estate plans with a trust also involve a will, even if it is a simple will that leaves everything to the trust.
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