How to Prepare a Living Trust at Home
- 1). Obtain a living trust form or software. Generally, the more expensive the software is, the more complete the information and estate-planning tools it will provide. Be aware, however, that the only form a basic living trust requires is the living trust itself, although other estate-planning tools may complement your trust. However you obtain the form or software, make sure it is tailored to the state you live in, because probate is governed by state law.
- 2). Create a trust that is either jointly held with your spouse or separate from your spouse. Stepchildren do not have automatic rights to property, because they are not blood relatives. Couples who married later in life may benefit from separate living trusts to ensure that each spouse's assets goes to his or her beneficiaries, regardless of which spouse dies first. A trust can even be written to benefit the surviving spouse, followed by the deceased beneficiaries once that spouse passes. (See reference 1)
- 3). Name yourself (or yourself and your spouse) the trustee of your living trust. Although you maintain control of your property regardless of whom you name as trustee, naming yourself makes several steps easier. First, you can fund the trust without the aid of anyone else. Second, you don't have to change the trust document in the event that the trustee cannot remain in his role for any reason.
- 4). Name a successor trustee. The successor trustee is the person who will act as trustee after you (and your spouse for a marital trust) die or become incapacitated. This will be the person responsible for distributing your assets to your beneficiaries after your death, or, in the event of your incapacitation, managing your assets for your benefit.
- 5). Declare the assets you are placing within the trust. Any personal property can be placed within the trust at the time of its creation. This property can either be included within the text of the trust or, more commonly, in a schedule that is referenced within the trust. (See reference 2, page 2.)
- 6). Place your existing property within the trust. Transfer deeds and titles to the trustee's name, "Jane E. Doe, Trustee of the Jane E. Doe Trust." Sign transactions with "Jane E. Doe, Trustee." (See reference 2, page 2.)
- 7). Add future purchases to the trust. For items that do not require title, add them to the schedule that lists assets. For real estate or vehicles, put the deed or title in the trust's name. Don't forget to sign the transaction as the trustee.
