How to Make Your Own Living Trust for FREE, A Step By Step Tutorial

Introduction

Creating a living trust can be an essential step in estate planning, allowing you to manage your assets effectively and avoid the lengthy probate process. This tutorial will guide you step by step on how to set up your own living trust for free using an online tool. You'll learn about choosing the right template, filling it out correctly, and important considerations along the way.

Chapter 1: Choosing the Right Template

1. Visit LawDepot:

   • Click the link provided in the video description to access LawDepot.com.

2. Select the Type of Property:

   • You will be asked what type of property you want to include in your trust. It's recommended to choose a mix of assets, such as:
     • Real estate
     • Financial accounts
     • Business interests
     • Personal property (cars, furniture, etc.)

3. Choose Your State:

   • Enter your state of residence. This is crucial as laws vary by state, particularly regarding signing requirements.
   • Click "Save and Continue."

4. Creating the Trust with Others:

   • If you are creating the trust with a spouse, confirm by clicking "Yes." If you are single or doing it alone, select "No."
   • If you are unsure about decisions with your spouse, consider consulting a lawyer.

5. Understanding the Grantor:

   • The term "grantor" refers to you, the creator of the trust. Ensure you understand this role.

Chapter 2: Providing Personal Information

1. Input Your Information:

   • Enter your full legal name, city, and state. Use your name as it appears on your driver's license.
   • If married, include your spouse's full legal name and information as well.

2. Designating Trustees:

   • Decide who will manage your trust assets. This person (or persons) is referred to as the trustee.
   • Confirm that you and your spouse will be the initial trustees.
   • Choose successor trustees who will take over if you become incapacitated or pass away. Select at least two people to ensure continuity.

Chapter 3: Listing and Managing Assets

1. Identify Your Assets:

   • List the assets you plan to transfer into the trust, including:
     • Your home (include the full address and assessor's parcel number)
     • Financial accounts (checking and savings)
     • Investment accounts

2. Avoid Common Mistakes:

   • Ensure that you do not forget to transfer assets into the trust after creation. The trust only controls what is inside it.
   • Remember that retirement accounts typically should not be transferred into a trust to avoid tax implications.

Chapter 4: Beneficiaries and Gifts

1. Specify Beneficiaries:

   • List the individuals or entities that will receive your assets. Ensure to include their full legal names and addresses.
   • You can designate certain beneficiaries as minors and set conditions for when they can access their inheritance.

2. Gifting Specific Assets:

   • If you want to gift specific items (like cars or collections), list them here with detailed descriptions.
   • Decide whether to divide assets equally or unequally among beneficiaries.

3. Finalizing Trust Provisions:

   • Include instructions for paying final taxes and debts from the trust.
   • Consider whether funeral costs should be paid from the trust.

Chapter 5: Signing and Final Steps

1. Signing the Trust Document:

   • Determine the signing requirements based on your state (e.g., notarization, witnesses).
   • Make sure you follow these requirements to ensure the trust is enforceable.

2. Reviewing the Document:

   • Once your document is generated, review it carefully to ensure all information is correct.
   • If you have questions, refer to the FAQ section on LawDepot or consider taking an online class for further guidance.

3. Downloading the Document:

   • You'll need to sign up for a free trial to download the document. Ensure you download it within seven days to avoid charges.
   • Cancel the subscription if you do not wish to continue after downloading your trust.

Conclusion

Setting up a living trust is a vital process that can help you manage your estate and protect your beneficiaries from probate court. By following this step-by-step guide, you can create your own trust for free using LawDepot. Remember to double-check all information and seek legal advice if needed to ensure everything is done correctly. For more detailed information and support, consider enrolling in a free class to further your understanding of living trusts.