A Few Questions About Using Living Trusts

Question 1: How much does it cost to create a Living Trust?

Generally, Living Trusts are simple to create and are not very expensive. However, the Living Trust has to be run properly by a trustee, and that trustee may incur expenses as he or she administers the Trust. Depending on how long the Trust lasts and how much you pay the trustee, these costs can be considerable.

Question 2: How do I actually transfer property to the Trust?

The transfer of property to your LivingTtrust is known as funding. To fund the Trust, you have to sign over your property to the Trust as the owner. So, for example, to have the Trust own your home, you’ll have to transfer the deed or title to the Trust. It’s important that you properly fund your Living Trust, or you may lose all the benefits of having one, so talk to a qualified estate planning attorney for more information.

Question 3: How much effort and paperwork are involved?

That depends. For some Living Trusts there is a minimal amount of paperwork involved, while people with more property to transfer may have to go through a complicated process of making sure all the necessary paperwork is properly drafted. However, one good thing about a Living Trust is that after you die, your estate does not have to file the Trust with the court. Living Trusts are private and are not subject to probate court requirements.