Preparing for a Living Trust lawyer’s visit
So you’ve decided to execute a living trust - that’s good. Here are some things to consider before you visit an attorney to draw up the documents.
If you do not have dependent children the process is fairly simple. The lawyer will interview you to establish the successor trustees (who do you trust to do a good job handling the finances of your estate?) as well as the beneficiaries (where should your assets be distributed after your death?).
Most law firms specializing in living trusts will also assist you with transferring some of your assets into the name of the trust. The process of recording your trust as owner of your house and other significant real estate is best handled by the lawyer, and this is usually included in their basic services.
Assets need to be transferred into the name of the trust in order to reap the benefits. Assets left in your name will not be part of the trust, and will be subject to inheritance via your will and possible probate. Before you visit a lawyer, draw up a list of the assets in the estate, including real estate, vehicles, bank accounts, funds and annuities, etc.
Many times a living trust is drawn up, the house transferred in and the process is left hanging. Unless you specify otherwise, the lawyer will help only as far as preparing the documents - it is up to you to contact financial institutions, the Department of Motor Vehicles and the bank to transfer your assets.
If you do have dependent children, you should consider their care in the unlikely event of losing both parents. You should select guardians for your children, and seek the guardian’s consent to be listed in your living trust. Assets should be allocated for the expenses of raising the children and their education. You should also consider how old your children should be when major assets in the trust are passed into their care. Giving a lot of money to an 18 year old might not be the best choice - depending on the person of course. Consider a staged process that provides money for education, and some money as your children reach their majority. Some estate plans hold some money back until the children reach 30, 40 or even 50 years of age to provide for their retirement. All different kinds of plans can make sense, consider what will work best for your family.