how to create a real estate trust without a lawyer

How to Set Up a Trust Without an Attorney

• Visit an Online Wizard. Websites such as Rocket Lawyer or Legal Zoom have tons of information about trusts and offer free trust documents that you can fill out online.
• Choose a Trust Structure. There are many different types of trusts so read around the subject before you begin. ...
• Write the Paperwork. ...
• Sign, Witness and Notarize. ...
• Transfer Trust Assets. ...

Full Answer

Do I need an attorney to create a living trust?

If you were to hire an attorney to help you create a living trust, you would usually turn to an estate planning attorney to help you prepare your documents. In some cases, depending on what you put into your living trust, it can get pretty complicated.

Can you put real estate in a trust?

Let’s say you want to hold real estate in your trust. You’ll need to prepare and sign a new deed that transfers your real estate trust in your name and also includes the date. Anyone can learn how to create a trust, and you can start today.

How can I set up a trust without probate?

You can also set up a trust through the terms of your will. But this type of trust, called a testamentary trust, is created upon your death and won’t help you avoid probate. This article explains how to set up a living trust — a trust created while you're alive — also known as an inter vivos trust.

What do I need to create a trust?

To create the trust you’ll need a trust establishment date, the date on which the trust becomes active and legally binding. You’ll also need to list the trust’s beneficiaries, those who you wish to serve as trustees of the trust and oversee the administration of the trust, and a list of your assets being placed into the trust.

Can I make myself the trustee of my trust?

Appointing Yourself as the Trustee of Your Own Trust Legally, you can appoint yourself as the Trustee of any trust you create, whether it is a revocable or irrevocable trust.

At what net worth do I need a trust?

Here's a good rule of thumb: If you have a net worth of at least $100,000 and have a substantial amount of assets in real estate, or have very specific instructions on how and when you want your estate to be distributed among your heirs after you die, then a trust could be for you.

Is Legalzoom good for a trust?

The answer to your question of whether doing a living trust on Legalzoom is as good as an attorney is an emphatic NO.

Can you put a trust in your own name?

Most Californians use their own name when naming their Revocable Trust. For example, John Smith and Sally Smith might name their trust, “The John Smith and Sally Smith 2020 Revocable Living Trust,” or simply “The Smith Family Trust”.

What are the 3 types of trust?

To help you get started on understanding the options available, here's an overview the three primary classes of trusts.Revocable Trusts.Irrevocable Trusts.Testamentary Trusts.More items...•

What are the disadvantages of a trust?

What are the Disadvantages of a Trust?Costs. When a decedent passes with only a will in place, the decedent's estate is subject to probate. ... Record Keeping. It is essential to maintain detailed records of property transferred into and out of a trust. ... No Protection from Creditors.

Who owns the property in a trust?

The trusteeThe trustee is the legal owner of the property in trust, as fiduciary for the beneficiary or beneficiaries who is/are the equitable owner(s) of the trust property. Trustees thus have a fiduciary duty to manage the trust to the benefit of the equitable owners.

Why you shouldn't use LegalZoom?

LegalZoom Admits Its Limitations in Helping You LegalZoom's legal document service is not a substitute for the advice of an attorney. LegalZoom cannot provide legal advice and can only provide self-help services at your specific direction. LegalZoom is not permitted to engage in the practice of law.

What should you not put in a living trust?

There are a variety of assets that you cannot or should not place in a living trust. These include: Retirement Accounts: Accounts such as a 401(k), IRA, 403(b) and certain qualified annuities should not be transferred into your living trust. Doing so would require a withdrawal and likely trigger income tax.

Can I put my property in a trust?

With your property in trust, you typically continue to live in your home and pay the trustees a nominal rent, until your transfer to residential care when that time comes. Placing the property in trust may also be a way of helping your surviving beneficiaries avoid inheritance tax liabilities.

Does a trust need a bank account?

Property you put in a living trust doesn't have to go through probate, which means that the assets won't get tied up in court for months and maybe years. However, you don't have to put bank accounts in a living trust, and sometimes it's not a good idea.

How do you name a real estate trust?

Things to Keep in Mind When Naming a TrustTry a shorter name. ... Decide if you want to keep it confidential. ... Ask yourself if confidentiality is actually important. ... Consider keeping your business separate. ... Always pay close attention to spelling and legal names.

How to make a trust effective?

Then, to make it effective, use a deed or standard transfer document to transfer the property of the trust into the trustee's name, per the trust's terms. Your next step is to fund the trust.

Who is the person who creates a trust?

The person who creates the trust is called the "settlor.". 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.

Why do people have trusts?

Typical reasons for having a trust are: 1 Avoiding the probate process and the costs and time associated with it 2 Protecting assets for children until they are mature enough to own them 3 Avoiding or reducing estate taxes 4 Having more flexibility than a will 5 Managing assets when the settlor is incapacitated 6 Preventing finances from becoming public record in probate court

What is a trust when you die?

Trusts allow people to say how their property will be distributed after they die while maintaining some control over their property while they are alive. A trust can be simple or complicated to create, depending on your assets and family situation. Trusts often are misunderstood.

What is a living trust?

A living trust is a trust created during life to either save tax money or establish a long-term way to manage property. Living trusts are specifically designed to avoid probate and are also used to safeguard financial privacy and manage assets should the owner pass away or become incapacitated.

Why do people choose a revocable trust?

Most people choose a revocable trust because they want to retain the power to revoke or amend it. An irrevocable trust can be beneficial for tax purposes, but it is not a good option for most people. It cannot be revoked or amended except under limited circumstances.

How much does it cost to create a living trust?

Many people who want to create a living trust contemplate hiring a living trust lawyer. Hiring a living trust lawyer can cost between $1,200 to $2,000, which does not itself guarantee you top-quality service. For simple situations, you can use do-it-yourself books or software and pay around $60. If you are willing to invest some time using ...

What is a living trust and what does it do?

Living trusts are legal documents recognized by the court that essentially lays out how you want certain portions of your assets to be distributed to particular people while you’re still alive. It also makes sure that even after you die, everything will be distributed to the right people, according to this document (s).

What would a lawyer do to help with a living trust?

If you were to hire an attorney to help you create a living trust, you would usually turn to an estate planning attorney to help you prepare your documents. In some cases, depending on what you put into your living trust, it can get pretty complicated.

How to make a living trust yourself

Hiring an attorney to help you create a living trust can ensure that no mistakes are made when your assets are distributed, but a lot of the time, it may be super expensive or not even necessary. A lot of the time, with proper research and dedication to creating it, you may be able to create a living trust on your own. And we’re here to help!

How much does a living trust cost?

The price of a living trust will depend largely on whether or not you hire an attorney to help you create it. This is one of the reasons a lot of people don’t deem it necessary to hire an attorney if their living trust isn’t very complicated.

What is a trust?

A trust is a legal structure that contains a set of instructions that includes exactly how and when to pass assets to your beneficiaries. There are dozens of trust structures available, and only after careful consideration should you determine the type of trust that works best for you. Contrary to popular belief, ...

Who will manage a trust when you die?

You’ll need to include your own name (as the grantor or trustee) and who will manage the trust (you). The name of who will take over as trustee and distribute property in the trust when you die or becomes incapacitated (this person is called the successor trustee).

What are the benefits of a trust?

1. One key benefit of creating a Trust is that your loved ones will avoid probate — a long, complicated court process. When you transfer assets to your trust, you own everything in your trust while you’re still alive. After you die, your assets go directly to your beneficiaries.

What is a grantor trust?

Grantor Trust. A grantor trust is a trust that involves the elements of control listed in the federal income tax code. It includes the power to revoke the trust, the right to receive the trust’s income and/or principal and the role of trustee.

What type of trust protects the property of the beneficiary?

Spendthrift Trust. This type of trust is protected against the creditors of a beneficiary. In other words, a spendthrift trust protects trust property from an irresponsible beneficiary and his or her creditors. It’s a type of property control trust that limits the beneficiary’s access to trust principal.

What is a special needs trust?

Special needs trusts are usually specialized spendthrift trusts created for a beneficiary who suffers from a disability. It may include instructions about the beneficiary’s public benefits, like Supplemental Security Income or Medicaid.

What is a revocable trust?

Specifically, a revocable trust, also called a revocable living trust, is a document that can be modified by the person who creates it at any time while he or she is still alive. In order to make sure your trust is exactly what you want, it’s important to choose the right service for the right reasons.

How to put a house in a trust?

Putting your house in a trust means creating a new property deed with the trust’s name and filing it with the county recorder's office. If you want your trust hold stock certificates or bonds, you would similarly need to reregister them into the name of the trust. 6. For certain assets, name the trust as beneficiary.

How to set up a living trust?

To set up a living trust, you must write a trust agreement and then properly fund the trust with assets. The trust document requires notarization in most states. You can set up a revocable living trust on your own, but an irrevocable trust will likely require the services of an attorney.

What can you do with an irrevocable trust?

Trusts that cannot be closed, called irrevocable trusts, can also help you do the following: Retain eligibility for government benefits, such as Medicaid. Minimize taxes, including income tax, capital gains tax, or estate tax. Provide asset protection. Donate to charities while creating a stream of income.

How to fund a trust with money?

4. Set up a trust bank account. You'll want to fund your trust with money and the easiest way to do that is by setting up a trust bank account. This is especially important if you're setting up a trust fund, which provides money to your beneficiaries.

Why do you need a trust after you die?

One of the main advantages of setting up a trust is having more control over how your assets are distributed, as a will distributes your estate after you die, but a trust can be set up to distribute assets only when certain conditions are met. After your death, trust assets can pass more seamlessly to your beneficiaries outside ...

Why do people get living trusts?

One reason to get a living trust is to avoid probate, which can lengthen the amount of time it takes for someone to receive the deceased’s assets and property. (Learn more about how to avoid probate .) Using a trust keeps details private, while wills become public record eventually.

How to set up a trust account?

For other assets, designate the trust as beneficiary. 1. Decide how you want to set up the trust. You can set up a trust by hiring an estate planning attorney, using an online service, or opening one on your own.

How to draft a living trust?

To draft a standard living trust—which is what most attorneys offer—you start with a lot of legal boilerplate (off-the-shelf legal language) and add the following information: The name of the person creating the trust (called the grantor, settlor, or trustor). If it's your trust, that's you. The name of the person who will manage ...

Can a revocable trust be used as a will?

A revocable living trust, unlike a will, offers a fast, private, probate-free way to transfer one's property after death. Although a living trust is not a complete substitute for a will (it doesn't allow you to name a guardian for a child, for example), it is definitely a more efficient way to transfer property at death, ...

What can a trust hold?

A trust can hold many types of assets including real estate, life insurance policies, and individual retirement accounts. However, to move real estate from the name of the trust grantor into the trust vehicle requires a specific type of trust and specific steps to be followed. Funding your real estate trust is an important step in forming ...

What documents are needed to transfer a deed to a trust?

Sign all necessary documents: Other documents may also be required, such as local, county or state tax forms, or a certificate or memorandum of trust.

What is an irrevocable trust?

In an irrevocable trust, the grantor names a trustee to oversee the assets included in the vehicle. These properties and other assets are no longer the property of the grantor. They will lose most control over the assets. The grantor cannot sell the property and income from the included assets would go into a trust account.

What happens if you don't leave a will?

If you don't also have a will directing your property into your trust at the time of your death—called a pour-over will—or if you don't leave a will, your state may decide which of your family members should receive ownership of the property after your death. Also, the estate will need to go through the long and costly probate process.

Can a grantor sell property?

The grantor cannot sell the property and income from the included assets would go into a trust account. Depending on how the document is structured, they may still be able to use the property as before.

Is a trust revocable?

Types of Trusts and Probate. A trust can be revocable or it can be irrevocable. In a revocable trust, the grantor—trust maker—is the trustee. They still control the property, can sell it, derive income from the property, or use it as they would before the trust. The real estate still remains property of the trust maker and creditors can claim ...

Can I offer a memorandum without a copy of my trust agreement?

You can offer the memorandum without turning over a copy of your complete trust agreement, which will contain a lot of personal information about all the assets you may be transferred into the trust. An attorney should be able to assist you with securing the proper approval from the association.

How to make a living trust effective?

In order to make your living trust effective, you need to make sure that the ownership of your house is legally transferred to you as the trustee. Since your house has a title, you need to change the title to show that the property is now owned by the trust.

What is the name of the trust you set up to avoid probate court?

In order to avoid probate court, your assets need to be placed into a living trust. This called funding the trust. When you create a living trust, you are known as the settlor or grantor, depending on what state you live in. When you set up the living trust, you also assign yourself as the trustee.

How long does it take to get money from a living trust?

This means that your family can receive your money, property and assets in a matter of days or weeks after you pass instead of months or potentially years.

What is estate planning?

Estate planning is about creating a custom plan to allow you to transfer your money, property, and assets to your family in the most efficient way possible. The two most common estate planning documents are the last will and testament and the revocable living trust.

What is probate process?

Probate is a public process, so anyone can see the size of your estate (often what you actually owned), who you owed debts to, who will receive your assets, and when they will receive them. The process invites upset heirs to contest your will and can expose your family to greedy creditors and potential fraudsters.

Why put a house in a trust?

The first reason is that they want their family to be able to inherit their home without having to go through the long, stressful, and expensive probate court process.

How long does it take to get a probate?

Second, probate can take a long time. The standard probate process takes a minimum of 5 months to complete. However, over the past decade we’ve experienced that it generally takes 9 months to a year to resolve simple cases (and several years for contested cases).