How to Do Living Trust by Yourself
Creating a living trust is an important step in estate planning, allowing you to manage and distribute your assets according to your wishes while you are still alive. It also provides peace of mind that your loved ones will be taken care of in the event of your incapacity or death. While hiring a lawyer to draft a living trust can be costly, it is possible to do it yourself with the right guidance and resources. In this article, we will walk you through the process of how to do living trust by yourself.
1. Understand the Basics of a Living Trust
Before you begin, it’s essential to understand what a living trust is and how it works. A living trust is a legal document that establishes a trust during your lifetime. It outlines how your assets will be managed and distributed upon your death or incapacity. The trust can be revocable, allowing you to modify or revoke it at any time, or irrevocable, which means it cannot be changed once it is created.
2. Gather Important Information
To create a living trust, you will need to gather important information about your assets, including the value, type, and location. This will help you accurately list your assets in the trust document. You should also gather information about your beneficiaries, including their names, relationships, and contact information.
3. Choose a Trustee and Co-Trustee
A trustee is responsible for managing the trust’s assets and ensuring that your wishes are carried out. You can choose yourself as the trustee, but it is often a good idea to have a co-trustee, such as a family member or friend, to assist you in managing the trust in the event of your incapacity. Make sure to discuss your choice with the person you select and ensure they are willing to take on this responsibility.
4. Draft the Trust Document
There are several ways to draft a living trust document. You can use a trust-making software, which can be found online or at your local office supply store. Alternatively, you can use a fill-in-the-blank form, which may be less comprehensive but can still provide a basic structure for your trust. It is crucial to carefully review the document and ensure that it meets your specific needs and goals.
5. Fund the Trust
Once you have drafted the trust document, you will need to fund it by transferring your assets into the trust. This process may vary depending on the type of asset, but generally, you will need to change the title of your assets to reflect the trust as the owner. It is essential to consult with a professional, such as an attorney or a financial advisor, to ensure that this process is done correctly.
6. Review and Revise
After funding the trust, it is crucial to review and revise the document as needed. Life changes, such as marriage, divorce, or the birth of a child, may require updates to your trust. Make sure to keep the trust document in a safe and accessible place, and inform your beneficiaries and executor of its existence.
7. Consult with a Professional
While it is possible to do living trust by yourself, it is advisable to consult with a professional, such as an attorney or a financial advisor, to ensure that your trust is legally sound and meets your specific needs. They can provide guidance and answer any questions you may have during the process.
In conclusion, creating a living trust by yourself is a feasible option with the right guidance and resources. By understanding the basics, gathering important information, and following these steps, you can ensure that your assets are managed and distributed according to your wishes while providing peace of mind for your loved ones.
