Do You Need an Attorney To Create a Trust?

The short answer is no. You don’t need an attorney to create a trust. But there are some important considerations when making a do-it-yourself trust. You must ensure your trust conforms to your state’s laws while meeting your needs.

This article explains making a revocable living trust without an attorney. You can make a simple trust by yourself. But trust laws are complex and vary by state. If your trust is wrong, you can unintentionally make things worse for your loved ones.

Consider contacting an estate planning attorney who does trust planning if you have a complex estate, like if you have a special needs child or children from a previous marriage. An estate planning attorney can ensure your trust meets your goals and conforms to state law.

How Can I Make a Trust Without an Attorney?

There are many types of trusts. The most common is the revocable living trust. This type of trust is a legal document that replaces a last will in your estate plan. A revocable living trust is generally more complex and expensive than a will. But many choose a trust over a will to avoid the probate process of winding down your estate. It’s a long, expensive, and public process. Anyone can find out the size of your estate and who’s getting an inheritance.

You may not need an attorney to set up a trust if you have few assets and beneficiaries. Plenty of books and online tools help you make estate planning documents. These tools range from simple fill-in-the-blank templates to more interactive question-and-answer systems.

If you decide to make a DIY trust, you’ll need the following information:

• The person creating the trust: This is the grantor or settlor.
• The person who manages the trust: This is the trustee.
• The person who will manage the trust if the trustee can’t do it: This is the successor trustee.
• The people who will receive distributions of the trust property: These are the trust beneficiaries.
• The person who will manage any property you leave to minors: This person is the trustee of the child’s inheritance. They serve in that role until the child is old enough to receive the property.

When Should I Hire a Trust Attorney?

Deciding whether to create a trust yourself can be difficult. On the one hand, an attorney is expensive. On the other, making a mistake could have unintended consequences. The following are some things to think about when deciding:

• The complexity of your estate: The nature of your assets and to whom you leave them can make your estate more complex. For example, you may need custom drafting when planning for minor children.
• The laws in your state: States have different requirements for creating a valid trust. For example, in some states, you must sign your trust before a notary and witnesses. Other states only require a notary.
• The tax implications of your trust: It’s essential to consider your potential estate tax liability when making a trust. For example, does your estate exceed the federal estate tax exemption? The generation-skipping tax is also something you must be aware of.

What Are the Risks of a Do-It-Yourself Trust?

Your situation may be unique. So there may be better options than a one-size-fits-all approach to estate planning. Even a tiny mistake in the terms of the trust can cause problems for your heirs. You should be aware of the following risks if you decide to make a trust yourself:

• A third party often doesn’t look at your DIY trust until you die. So a court or trustee can’t ask you to explain any ambiguity in your instructions. That means your wishes may not get carried out.
• Needing a court to interpret your trust will make trust administration more expensive.
• In addition to creating the trust document itself, you must also fund the trust. Funding the trust is the process of retitling your assets in the name of the trust. Having an unfunded trust could cause your estate to go through probate.

Contact an Estate Planning Lawyer for Help

You can make a simple trust using an online service or book. But be cautious if your estate is complex. In your quest to save money, you could make life harder for your family members. Your mistake could cost your estate more money than if you had hired a trust attorney. An experienced attorney can give you legal advice and help set up your trust.