Creating a Living Trust-What You Should Know!

A living trust is an arrangement made during a person's lifetime that organizes their property to be distributed after their death. A trustee (usually the person initially) takes over the living trust and all the property covered under the trust. After the person has died, a succeeding trustee takes over and becomes responsible for distributing the property to the beneficiaries outlined by the trust. 

An effective estate plan is more than a decision on how to distribute your assets after death and should be developed at the law offices of a qualified estate planning attorney. A will is an important starting point in the process, but may not always be enough depending on your specific situation. There are a variety of estate planning tools that can be utilized to give you and your family security and peace of mind. A will is a written document that outlines how a person wants their assets and property distributed upon their death. If applicable it will indicate who will become the guardian of minor children or disabled dependents. A will also sets out who will administer the estate.

Creating a living trust is a relatively simple process, assuming you know your estate and your plans to distribute it. To create the trust, you will need to establish the name of the trustor (yourself), the name of the first trustee (during your life) and the successive trustee(responsible for distributing property), and the beneficiaries of the trust. You will also need to know the components of your estate you plan to add into the trust, and will need proof of ownership. To make your living trust official, you will end up signing a "Declaration of Trust," a legal document defining the terms of the trust.