To create a Basic Revocable Living Trust, you start by creating a "Declaration of Trust" which is similar to a Will. In this Declaration you name the people and/or organizations you want to leave your Trust property to after your death. Since this is a Revocable Trust, you can change these Beneficiaries at any time, as well as revoke the Trust if you choose.
For a Basic Trust, you would name yourself as the Trustee. If you are married, you and your spouse can create the Trust together and name yourselves as Co-Trustees.
Decide on the property that you want to bequeath after your death. You then fund the Trust by transferring ownership of this property to yourself, as Trustee. Almost any property can be placed in a Trust: savings accounts; stocks; bonds; real estate; life insurance; and personal property. You will maintain control of the property in Trust since you have established yourself as the Trustee.
There is critical paperwork that must be completed when forming a Living Trust. For example, when including your house in your Trust you must sign a new deed reflecting that you own the house as a Trustee of the Living Trust, rather than as an individual. If you are not going to have your Trust created by an attorney, it is advisable to obtain software and/or books that can explain these specifics.
You will also name a Successor Trustee in your Declaration. This is the person who will take over the trust after you die and transfer ownership of the trust property to the Beneficiaries you have named. Your Successor Trustee can usually complete this within a few weeks with minimal paperwork and no probate court proceedings.
It's a good idea to make a back-up Will, even when creating a Living Trust. Sometimes property acquired after you have created the Living Trust fails to be transferred to the Trust, usually by simple oversight. In a Will you can include a clause that names someone to receive all of the property that you haven't identified and left to a specific Beneficiary. This will ensure that any property not transferred to the Trust will still go to whomever you want to receive it. Without this backup, any of your property that hasn't been transferred to the Trust will go to your relatives as determined by your state's intestacy laws.
Creating a Basic Living Trust is usually no more time consuming or complicated than making a Basic Will. However, if your financial and estate issues are in any manner complex, or if you have questions and concerns, it is advisable to consult an experienced estate planning attorney.
Estate planning - fundamentals of Trusts and Living Trusts. (n.d.-a). https://www.hg.org/trusts-and-living-trusts.html