5 Things You Must Do before You Create a Living Trust
Death is inevitable. It’s always the best choice to plan out what you want to happen to your assets when the time comes that you pass away. What you can do instead is to start estate planning and create a living trust.
A living trust will give you peace of mind. You can rest assured that you will provide for your family after your death, and aside from that, you can also let them know your wishes to be followed.
Before you create a living trust, you have to prepare well. Here are some essential things that you shouldn’t miss for your living trust.
1. List Down All of Your Assets
When you create a living trust, the most vital thing you need is to list down all of your assets. This is not only for you to know the value of what you own, but also for the assets you want to put in your living trust.
As you know, assets include:
- Real estate
- Bank accounts
2. Collect All the Paperwork for All of Your Assets
When you create a living will, you need to have all of your assets’ paperwork. If you have real estate, then you have to have the title. If you have a bank account, then you need to have the account’s passbook. If you have a vehicle, then you have to have the registration papers.
This is just a shortlist of all the paperwork you need for your assets, but keep in mind that you need to have all of them. These papers will surely be a great help for the living trust’s executor.
3. Name Your Beneficiaries
Aside from listing all of your assets and collecting the paperwork, you also need to name your beneficiaries. A beneficiary is a person who will receive the benefit of your assets.
When creating a living trust, you need to name at least two beneficiaries. These two beneficiaries are the ones who will receive the benefit of your assets, but only if you don’t have a spouse.
Your beneficiary can be your child, your grandchild, your spouse, or any other of your relatives. You can appoint someone for the trustee to run your trust, but if you don’t have any trustee, then your beneficiaries will be the ones to receive the benefits.
4. Assign Someone as Your Successor Trustee
A successor trustee is someone who will take over your living trust when you are not around anymore. However, he or she can only take over your trust when your beneficiaries accept them.
Your successor trustee should be trustworthy, and they should also be someone who will definitely follow your wishes. It is also good if you assign someone who can take good care of your beneficiaries.
5. If You Have Children, Pick a Guardian for Them
When you create a living trust, you also need to name someone to be the guardian of your children. You can choose anyone, but it is better to pick someone responsible. Aside from that, they should also be someone who can take good care of your child.
If you are married, then your spouse should be the one to be your child’s guardian. But if you don’t have a spouse, you can choose anyone else you trust.
Creating a living trust can benefit you, especially when you think about an orderly distribution of your assets after your death. You can also provide for your children, grandchildren, spouse, and other relatives. They will surely appreciate the things that you could do for them.
If you’re looking for an estate planning attorney in Colorado to help you create a living will, here’s a solution for you. Estate Planning Lawyers Colorado will be your guide in protecting your family and protecting your legacy. Schedule a planning analysis consultation to get started today.