Question : How do I create Living trust without using a lawyer?
I want to understand the detailed process for creating the Living Trust and what are the Tax benefits? I'm a legal resident of the Los angeles California and have a young daughter. Want to make sure I plan for her future. I don't have the money to go to a CPA or to an attorney. also are there any free services available?
- asked by Davidson
All Answers:
Answer #1
I used Suze Orman's Will and Trust Kit software --currently at Amazon for $13.57 (see link below). It walks you through all the steps and is reallyquite easy. Once you've finished all yourdocuments, you will then have to sign them, getthem witnessed in some cases, and get themnotarized. You will then need to transfer yourassets (including your house) into the trust. Thesoftware includes instructions for how to do this,including drafts of letters to send to your bank,brokerage house, etc.
- answered by Kathryn
Answer #2
As previously stated by Kathryn, get and followthe instructions in inexpensively availablesoftware. The most important thing to remember isthat after all of the papers and forms have beenwritten and filled out, signed and notarized, theymust be filed with the appropriate County CourtClerk. This "makes them legal".
- answered by Robin
Answer #3
The previous posters are correct in recommendingsoftware. However, I would suggest you giveserious thought to this before you proceed. Ifyou can't afford a CPA or attorney, you have otherissues to consider. 1) do I have sufficientassets that I need to be pursuing this now?2) CanI afford the fees associated with following thruwith this.(filing fees, transfer fees)If you havereal estate you will have costs associated withtransferring it to the Living Trust. Check withyour state CPA association or Attorney group andsee if any free services are available. Anothergood source of information would be a localuniversity. Most have knowledgeable professors onstaff who could consult with you for free or atdiscounted rates. Hope this helps.
- answered by BS
Answer #4
As opposed to having to pay for an expensivelawyer that you may be unsure about, other ways tocreatea Living Trust exist. Lawyers can chargeupward of $1,000 to draw up a trust. However,there are books, programs, and websites that canhelp you out. Among them:-Quicken WillMaker &Estate Planning Plus 2007 {software}-Plan YourEstate by Denis Clifford and Cora Jordan (NoloPress; $44.99) {informative book}-Make Your OwnLiving Trust by Denis Clifford (Nolo Press;$39.99). {informative book}-Legal Zoom {websitewith step-by-stepprocess}
http://www.legalzoom.com/Also, here's anoverview of creating a Living Trust:A livingtrust, also known as a Revocable Living Trust or aFamily Trust, is a viable financial planning toolfor anyone--not just the rich and famous. A livingtrust is a legal document that holds title orownership of property and assets on behalf of itsbeneficiaries. You appoint someone (a successortrustee) to make certain your estate goes to theones you choose after your death. Almost anythingcan be placed in a trust: savings accounts,stocks, bonds, real estate, life insurance, andpersonal property. You can change a revocableliving trust; you can't touch an irrevocable one.Benefits are numerous. A trust avoids the hassleof probate, prevents the courts from controllingyour assets if you're incapacitated, and lets youcontrol what you leave to your children andgrandchildren. Even if you are a single parentwith shared or sole custody, a trust can ensurethat benefits earmarked for your child will godirectly to him or her. This is especially thecase in situations where there are multiplechildren from other relationships living in thesame household or with remarried spouses, who havechildren from a previous marriage. Many people areunder the impression that their will alone issufficient to avoid probate. Unfortunately, a willis simply an expression of your wishes and must gothrough some kind of court process. Before yourestate can go to your children, probate court hasto determine and settle your debts, establishclear title to everything you own, and thendistribute the estate according to your will or tothe intestate succession statutes in your state.Another misunderstanding, many experts say, isthat holding assets in joint tenancy will bypassprobate. Joint tenancy is the method of puttingyour child's name on property or accounts. Thenthere's the privacy factor. Unlike a will, a trustis not filed with the court and does not becomepublic record at your death. Establishing a trustforces you to clean house and to identify what youhave and where it goes upon your death.The firstthing a lawyer will want to see is an inventory ofall your assets.Armed with these tools, you cancreate a valid Declaration of Trust yourself. GoodLuck.For other, and perhaps similar, questions,allbusiness.com is a good source for suchinformation. For example, allbusiness has a hostof finance and accounting experts who write blogson questions you mayhave:
http://www.allbusiness.com/2984961-1.htmlAlso, you may like to watch this video - it helpsexplains the importance of a good SuccessionPlan:
http://www.allbusiness.com/buying-exiting-businesses/exiting-a-business/3474048-1.html
- answered by AllBusiness Editors
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