How to Set Up Living a Living Trust Washington State

Revocable Living Trust How to Set Up Living a Living Trust Washington State

All About Living Trust Washington State

A living trust is an estate planning tool that is created by a grantor while they are still alive, giving beneficiaries ownership of their assets once the grantor passes away. This article will explain the essentials of a living trust and how to set one up in Washington State. It will also introduce you to DoNotPay, a cost-friendly and reliable service that can help you set up a living trust in minutes using artificial intelligence!

Living Trust – The Essentials

A living trust is a legal document that acts as an estate planning tool. It is essentially an arrangement where an individual, referred to as a trustee, holds legal title to the property for another person, referred to as a beneficiary.  

In simpler terms, a living trust is a trust you create during your lifetime to assign your assets to someone else after your death. The beneficiaries you identify in your living trust will receive the property you assigned to them after you die. 

Revocable vs. Irrevocable Living Trust

There are two fundamental types of living trusts: a revocable or irrevocable trust. The following table offers an overview of the main differences between these two types:

Revocable TrustIrrevocable Trust
  1. The grantor can make him or herself as the trustee
  2. The grantor maintains control of their assets
  3. The assets in the trust are still in the grantor’s name, therefore they are still taxable
  4. The grantor can make changes to the trust
  5. The grantor can change the beneficiaries of the properties
  6. A revocable trust is not a legal entity, so it does not have protection from creditors or lawsuits
  1. The grantor cannot be the trustee, they must designate someone else
  2. The grantor must relinquish control over the assets listed in the trust
  3. The assets are no longer in the estate of the grantor, so they are transferred out of your taxable estate. This reduces estate tax liability
  4. The terms of the trust cannot be altered or changed
  5. The grantor cannot change the beneficiaries
  6. The trust is a legal entity so that you will have better protection from creditors and lawsuits

 

Living Trusts in Washington State

The laws of setting up a living trust change according to state. The following section is specific to setting up a living trust in Washington State.

Am I required to have a living trust in Washington State?

The main advantage of setting up a living trust is that it prevents the need for additional expenses while dealing with complex probate court proceedings.

Washington does not utilize the Uniform Probate Code, which is a code that simplifies the probate process. Therefore, it is recommended to set up a living trust so that you will avoid Washington’s complicated probate process.

You are not required to have a living trust in Washington State, however many choose to set up one. 

If I make a living trust in Washington, do I still need a will?

In Washington State, you always need a will. A will is considered a backup plan for properties that were not included into your trust. This could be property that was acquired shortly after one’s death and was not added to the trust.

If you do not have a will, property that is not transferred by your living trust will be transferred to your closest relative, which is determined by Washington State law.

How to Set Up a Living Trust in Washington State

Each state has its own laws when it comes to setting up a living trust, and you must act in accordance with the regulations of your state. If you reside in Washington State, then you should follow these steps before drawing up a trust:

  • Before drawing up a living trust, you must first decide if you want to set up an individual or a shared trust. 
    • An individual trust only includes the properties and assets you own, whereas a shared trust, often referred to as a joint trust, includes properties you or your spouse own, or those co-owned by both you or your spouse. 
  • Decide what properties and assets you own you want to include in your trust.
  • Choose whether you want to be the trustee, or if you want to choose a person to be your trustee. If you choose to be the trustee, you must appoint a successor trustee. A trustee is the person that manages and distributes your assets once you are unable to. 
  • Decide who will get each property. These people are referred to as the beneficiaries. 
  • Create the trust document.
    • You can either set up the trust yourself, follow an online template or hire a lawyer. We recommend using DoNotPay as it offers the same services as a lawyer, making it more reliable than an online template and more convenient than drawing up a trust yourself.
  • After creating the trust, you must sign it in front of a notary public. 

DoNotPay Helps You Create a Living Trust

Create a revocable living trust with DoNotPay! Make your own rules and dictate what happens to your assets after you pass. It’s never too early! Here’s how to get started:

  1. Log-in to your DoNotPay account
  2. Head over to the Revocable Living Trust product
  3. Tell us the state you live in
  4. Assign your trustees and beneficiaries ( you can select more than one for each)
  5. Distribute your assets as desired

Once you finish answering the questions, DoNotPay will create a revocable living trust for you! Estate planning becomes a very simple and easy process using the trusty robot lawyer.

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