When creating an estate plan, you can include diverse options based on your circumstances, your estate’s size, and the types of assets you own. Sometimes, having a will can be enough to address your needs, but there could be more challenges if you have complex properties requiring more flexibility than other arrangements.
In these situations, you may consider a living trust, which can be revocable. This option can allow you to modify it as needed, whether updating beneficiary appointments or taking out assets. The process of establishing this type of trust can vary, but it typically involves the following basic steps:
- Understanding the types of living trusts and choosing appropriately based on your circumstances, such as if you are married or you intend to own it separately
- Organizing your assets and properties to determine which can go into the trust
- Determining who will be your trustee and whether you want to appoint a successor trustee depending on your trust’s setup
- Drafting the paperwork associated with the trust, usually warranting help from a legal professional
- Affixing your signature on the documents at a notary public
- Transferring your assets into the trust
By creating this type of trust, you could appoint yourself as a trustee to stay in control of it and its properties. Still, this arrangement might not fit everyone, considering what it takes to create it.
Choosing the right estate planning tool
Before deciding to establish a living trust, it can be helpful to seek legal counsel first. Sometimes, the process of creating it can involve extensive costs that can offset the benefits. In these instances, other tools can be more appropriate to include in your estate plan.