A living trust is a legal arrangement that facilitates the transfer of assets from one party to another. Because these arrangements are funded upon their creation, the assets they contain don’t have to go through probate. As such, a living trust is a popular estate planning vehicle for simplifying the process of distributing property to beneficiaries. If you want to include one or more living trusts in your estate plan, here are the steps for getting started. 

How to Create a Living Trust

1. Consider the Assets You Wish to Transfer 

What kind of property do you plan on distributing to loved ones via a living trust? Some of the most popular assets to consider include small business interests, patents and copyrights, real estate, investment accounts, and valuable collections. Keep in mind that anything you wish to keep private should be transferred to a trust. Otherwise, it will eventually have to go through probate, which becomes public record. 

2. Determine Any Inheritance Terms 

Unlike last wills, living trusts allow the creator to impose restrictions on inheritances. For example, you can state precisely how you want the funds to be used and when they should be distributed. This feature is especially beneficial for those who wish to leave assets to children or disabled individuals. 

3. Sign & Notarize the Trust Document 

An attorney can help you prepare a legally binding trust document once you’ve determined which assets you wish to transfer to whom. If you opt to draft this document yourself, make sure to have a lawyer review it once you're done. After its terms are finalized, sign the document in front of a notary public to make the arrangement official. 

4. Transfer Title of Property 

A trust is essentially useless until the assets have actually been transferred to the trustee. The trustee is responsible for managing all applicable property until it can be distributed according to the trustor’s wishes. 

For help finalizing your living trusts, turn to Ferraro Kruk & Ferraro, LLP in Brockway, PA. Serving families throughout Cameron and Elk counties, this firm is proud to help clients prepare for all eventualities. With a commitment to providing personalized counsel and expert guidance in a variety of areas, their knowledgeable team can also assist with real estate transactions, family law disputes, and business succession planning. To request a consultation, call (814) 268-2202.