How To Put Assets into a Revocable Trust!

Estate planning is useful as it allows for a smoother and easier process of asset distribution once you pass away. This article will elaborately explain what a living trust is, each of its types, and how to put assets in a revocable trust. It will also introduce you to , an AI-Powered robot lawyer that can help you set up a living trust in minutes without any errors!

What is a Living Trust?

A living trust is essentially a legal document that is drawn up by an individual, referred to as a grantor, where they assign their properties and assets to different beneficiaries. 

The Two Types of Living Trusts

There are two types of living trusts: revocable and irrevocable trusts.

1. Revocable Trust
   • In a revocable trust, the grantor can designate themselves as the trustee and control his or her assets. 
   • This means that the assets in the trust will remain in the grantor’s estate, so they are still taxable.
   • In a revocable trust, the grantor has the power to change and alter the rules at any time. In this case, the grantor can change the beneficiaries or eliminate the trust altogether.

1. Irrevocable Trust
   • In an irrevocable trust, the grantor relinquishes his or her rights to control their assets as they designate another individual as a trustee.
   • The trustee is now the legal owner of the assets, so the grantor reduces his or her taxable estates. 
   • In an irrevocable trust, the terms and rules cannot be altered or changed. The named beneficiaries are set and the grantor cannot do anything to amend the agreement. 

The Differences Between a Trust and a Will

Both a living trust and a will are estate planning tools that protect your assets and ensure that they are passed on to your heirs. You can have both a will and a trust, however a trust skips probate court, which makes distribution of assets an easier process. The following lists highlight the differences between a trust and a will:

A living trust:

• Can take affect while you are still alive
• Skips the complex legal probate process
• It is often more difficult to change or alter
• It does not involve naming the guardianship of children, it is only centered around the grantor’s assets
• The transfer of assets is instant
• The information of the trust remains private so that people are not aware of what assets were transferred to which beneficiaries
• The process of a living trust is more expensive than that of a will

In contrast, a will:

• Only takes effect at death
• A will has to undergo probate court and has a more complex legal process
• A will can be easily altered
• A will must include the names of the guardians of the children
• When a will comes into effect, the asset transfer will take time
• All the information in a will becomes public
• Creating a will is more affordable

How to Place Assets into a Revocable Trust

To put your assets into a revocable trust, you must first name them in the trust and notarize the document. Here are the complete steps:

1. Change the property’s title on any real estate you own
2. Transfer the ownership of any cash and cash-related accounts
3. Change the name on securities, such as stocks and bonds
4. Sign the original stock certificate or any other document
5. List all of the assets on a property schedule

What Goes Into a Revocable Trust

If you want to draw up a living trust, you must include the following information:

• The name of the person drawing up the trust, often referred to as the grantor or settlor. 
• The name of the person who will oversee the trust, the trustee. In a revocable trust, this could be the grantor, however in an irrevocable trust, another person must be appointed. 
• The name of the person who will take over as a trustee to distribute your assets, the successor trustee, if the trustee and grantor become incapacitate. 
• The beneficiaries, which are the people who will receive the assets.
• The name of an individual who will manage any property that is left to beneficiaries who are minors.

Drawing up a living trust is different in every state, can help you create a living trust in accordance with the laws of your state. The following table includes a number of states, and the link to an article that explains how to draw up a living trust in each one:

DoNotPay Can Help You Create a Living Trust

You can decide to create a living trust yourself, or hire a lawyer to do so. If you want to hire a lawyer, you must be prepared to pay $1,200 – $2,000. 

Drawing up a living trust on your own may be quite intimidating as you must include legal jargon, and it takes a lot of time to complete. Not only is it extremely expensive to hire a lawyer, but it is also unnecessary. DoNotPay offers you the exact same services as a lawyer, therefore it is your best option! Here’s how to get started:

1. Create a account
2. Start a Revocable Living Trust task
3. Provide us with the state you live in and plan to get the trust notarized
4. Assign your beneficiaries and trustees
5. Tell us which assets will go under the trust

That’s it! Your revocable trust will be ready to go in minutes! How simple was that?

Discover More from DoNotPay

• Compensation for victims of crime
• Report copyright violations
• Create defamation demand letters
• Fight back against email spam