A living trust is created by a written document that places your property into a trust. This trust becomes effective immediately upon the creation of the trust itself. The trust document specifies exactly how your assets shall be distributed upon your death and is usually executed with a last will and testament that follows the same outline of your trust wishes.
Review the property you want to put into trust. Consider if the property you will be placing into the trust will require any retitling. Retitling property involves such actions as filing a new deed to a house. Find any identification documentation relating to the property which will fund the trust, such as a deed and banking account information.
Identity who you want to be the trustee of the trust. The trustee is a person who oversees the trust and may make distributions of property under the trust. Be certain to select a person who you trust wholeheartedly to abide by your wishes and make sure that person will accept nomination of the trustee.
Read More: What Happens When a Trust No Longer Has Assets?
Take all documentation to your attorney. Ask any and all questions to the attorney. Follow through with any directives. Complete the trust formation with the attorney.
Contact any banks or other financial institutions which may handle your trust property. Present the institutions with a written letter indicating that you have established a trust and seek to have a trust account.
If the trust is funded with real estate, file a new deed with the trust name. Contact the office in your jurisdiction that files real estate deeds (usually referred to a court clerk) and obtain the necessary documents necessary to complete the filing.
Warnings
- This does not constitute legal advice.
Tips
- Be certain to check with an attorney when thinking about forming a trust, as there are various implications which can restrict your right to trust property. Generally, it is a good idea to set up a trust bank account, even if there is a small amount of funds in the account, as the Trust may receive funds such as tax rebates, and therefore, a trust account is necessary.
References
Tips
- Be certain to check with an attorney when thinking about forming a trust, as there are various implications which can restrict your right to trust property. Generally, it is a good idea to set up a trust bank account, even if there is a small amount of funds in the account, as the Trust may receive funds such as tax rebates, and therefore, a trust account is necessary.
Warnings
- This does not constitute legal advice.
Writer Bio
J.S. Nogara began writing in 2000, publishing in legal texts, newspapers, newsletters and on various websites. Her credits include updating "New York Practice Guides: Negligence." She is a licensed attorney admitted to the New York State courts and the Federal Court, Southern District in New York. She has a B.S. from the University of Connecticut, a J.D. and an LL.M. degree.