Making an estate plan can be an effective way to address legal issues concerning your assets after death. You can include different tools, such as trusts, depending on your needs. However, determining the appropriate type of trust could be just as important as establishing it. Most trust types can be challenging to arrange, considering their complexity.
You could opt for a living trust if you prefer a simple setup that can give you the most control and stand the test of time. This arrangement can allow you to make changes anytime during your life and then convert it into an irrevocable trust during your incapacity or after your death. You can try different ways to establish this type of trust, but the process usually involves these basic steps:
- Determining the trust’s features – At this stage, you should consider your marriage and the properties you jointly own with someone else.
- Appointing specific people to roles necessary for the living trust – You could include a trustee or successor trustee based on your needs.
- Drafting the document – These papers may need to meet requirements set by relevant laws, potentially requiring legal services if you intend to include unique conditions.
- Signing the trust documents – This step usually happens at a state notary public.
- Funding the trust – This process can take a long time, considering the value of the assets or properties you plan to transfer into the trust.
These steps can become more elaborate and complex depending on the size of your estate and whether you have other goals to incorporate into your living trust.
Choosing a trust type appropriately
At first glance, a living trust could seem ideal, but other trust types or estate planning tools can be more appropriate based on your circumstances. Even before setting your eyes on creating a living trust, consider seeking legal counsel first to learn about other arrangements that could be more effective and cost-efficient. Considering all aspects before choosing a setup could also help you secure your estate and address legal concerns in the future.