What Not to Put into a Living Trust - Explained

Revocable Living Trust What Not to Put into a Living Trust - Explained

What Not to Put into a Living Trust - Overview

Looking to set up a living trust? Not sure where to start? This article will serve as a helpful guide for you to get your trust set up without a lawyer. 

This article will go over the difference between living trusts and wills, irrevocable trusts and revocable trusts, and how DoNotPay can help you set up your revocable living trust in record time. 

Why Do People Choose Trusts Over Wills?

First off, often those who choose to use trusts are seeking to skip the potential complications of the process used to validate wills. This lengthy process is called probate, and takes place after the will’s author has passed away. This can become complicated if the will is contested by family members. 

The Function of Probate

Probate process is to:

  1. Determine that the will’s author has died
  2. Verify the authenticity of the will
  3. Confirm that the author wrote the will 
  4. Make the will available for public consultation

While wills become active after their author’s death, trusts become active as soon as they are signed. The simplicity of trusts makes it a more desirable estate planning tool for others.

What is a Living (Inter Vivos) Trust?

Inter Vivos means, in Latin, between the living, and indicates an agreement made while still alive. Living trusts can be written to be revocable or irrevocable. Revocable trusts can be changed and modified at any point. Irrevocable trusts can only be changed after signing under special circumstances

How Do You Set Up a Living Trust?

Setting a living trust has many steps, and while most go to a lawyer to try and get their trust set up, many sites online will offer templates, or instructions to do it yourself. The process, though, can be lengthy. This is why we’ve expanded DoNotPay’s services to include helping you set up your living trust in the simplest way possible. Unsure of which option is for you? Check out our rundown of the options below:

CostEfficiencyReliability
Through Lawyer Trust lawyers can cost approximately $1,200-2,000The process itself may be quick, but you’ll have to research and select your lawyerReliable
YourselfFreeDepending on how well-versed you are in legal jargon, this can take a lot of timeVaries
Online TemplateRanges from $0 - approx $99, depending on the siteThis process can be easy or difficult, depending on the site, but you’ll have to do it yourselfThe reliability of online templates varies. This one is a good option if you are already familiar with trust language
DoNotPayDoNotPay costs $36 every three months and offers other legal services that can help you save moneyJust answer simple questions from our chatbot

[scroll down for full instructions]

Reliable

What Your Living Trust Should Not Include

  • Motor Vehicles
    • Cars and other vehicles are not worth the lengthy process to put in your living trust, as they do not have to go through probate, and therefore are perfectly easy to have transferred with no trouble
  • Health and Medical Savings Accounts
  • Retirement Accounts (IRAs)
    • For tax reasons, you’ll want to leave these accounts out of your living trust.
    • Learn more about the taxation of your IRA here
  • Life Insurance
    • You do not need to add your life insurance into your living trust, but you can make it a beneficiary of your life insurance, so all of the money upon your death would be put into the trust.
  • Uniform Transfers or Uniform Gifts to Minors’ Accounts 

Create a Revocable Living Trust with DoNotPay

DoNotPay can help set up revocable trusts to make your estate planning process simpler. In just these three easy steps, you can have your trust set up faster than anyone ever thought possible. No lawyer, no hidden extra fees, no hassle!

  1. Create a DoNotPay account and head over to the Revocable Living Trust service
  2. Provide the following information:
    1. Personal information such as name and place of residence
    2. Your trustee and back-up trustees
    3. Your beneficiaries 
    4. The properties and assets you will assign to your beneficiaries
    5. Rules your trustee should keep in mind
  3. To finish off, you’ll have to get the document notarized by an official notary public

Other Living Trust Resources from DoNotPay

We believe legal help should be accessible and easy for everyone, regardless of their income. That’s why we’re trying to offer our services at as low a rate as possible, with as wide of a list of services we can possibly provide you.

We also believe you should be informed about the processes that we can help you with. For more information on related topics to living trusts, see the following resources:

Check Out DoNotPay’s Other Services

Luckily enough for us, we’ve actually been kickstarted by the lockdown, and can now help you in more ways than ever before. Check out our other services— we’re pretty proud of them!

Want your issue solved now?