Setting up a trust is one of the most important things you can do for your family and your own legacy, and it’s something anyone can consider. Trusts aren’t just for rich people: they’re basic ways to manage your assets and avoid probate to protect your beneficiaries. Talk with an estate planning attorney who has experience in Louisiana to get started.
How to Set Up a Trust in Louisiana With Your Estate Planning Attorney
Choose Your Trust
There are many kinds of trusts, but essentially two large types: revocable and irrevocable. An irrevocable trust is one where you have some flexibility to change the terms during your lifetime. With an irrevocable trust, you cannot alter things once it’s been created. Both have their pros and cons, and an attorney is the one in the best position to tell you what type of trust is right for your assets and goals.
Choose Your Trustee
One of the most important decisions you’re going to make in this process is choosing a trustee. You may choose to be the trustee yourself for now, but you will still need to choose a trustee to step in should you become incapacitated or pass away. Your attorney will talk through with you all the requirements and responsibilities of a trustee so that you can make the right decision.
Choose What to Put In the Trust
Next, you have to decide what assets you want to fund your trust with. This can be money and financial accounts, real estate, business assets, and many other things. The keys will be deciding what you want to pass on, how you want the assets managed until that point, and the nature of the assets. Again, an attorney with Louisiana experience will be able to give you the best advice here.
Form Your Trust Document
You will need to provide certain information to establish a legal trust, including all the personal information of everyone involved, like you, the trustee, and all your beneficiaries. Your trust document must also accurately provide information on all the assets that will be transferred into the trust, with very detailed descriptions.
A trust that is created during your lifetime has to be made in writing, and two witnesses will need to watch you sign it and then sign it themselves. These witnesses cannot be beneficiaries. You must state a few things directly in your trust, such as your intention to create the trust, and if any of these elements are missing, the trust can be challenged or declared invalid.
Fund the Trust
Finally, you will fund the trust with the asset you wish to put in it. Your lawyer can help you make sure that this is done properly, as you must contact each asset manager, such as a bank or investment firm, and have the legal ownership of that trust changed from you personally to your trust.
For help setting up or managing your trust, contact Walter D. White Estate Planning & Elder Law in Shreveport, LA today.