One way of saving on tax or managing property for the long term is through a living trust. People can also design their living trust to specifically avoid probate, guard financial privacy and manage assets of the owner when they die or become incapacitated.
For people who consider creating a living trust, they are also considering hiring a living trust lawyer, which could cost between $1,200 to $2,000. Or you may also consider doing it yourself with the help of books and still manage to create a good trust.
Creating a trust is as easy as making a last will and testament which people can do without the help of a lawyer. To understand the process, look at the following basic information that may be included in the basic living trust template:
- The creator of the trust (your name if it’s your trust).
- The trustee, the person in charge of managing the trust (again, this is your name if it’s your trust).
- The trustee who will take over managing the trust and distributing the property when the original trustee dies or becomes incapacitated. This is usually a spouse, close friend, or adult child.
- The beneficiaries – the people who will get the property of the trust (the same as in a will).
The trustees who will manage any property left to young beneficiaries:
There is a trustee assigned to manage the property for children and young adults who inherit a property. The trustee manages the property for the heirs until they reach a certain age or maturity to be able to manage it on their own.
After you draft your will
Soon after you have written down the important information that will go on your will, you will have to sign it in front of a notary. After that, you will use any standard transfer document, such as a deed, to transfer the property to the trust in the trustee’s name.
It’s a fairly simple and straightforward process which you may be able to do yourself. However, there may be certain cases that require a more thorough and informed decision. In which case, you will need to hire a living trust lawyer to handle complex issues. Do some research and learn more about a basic living trust before hiring.