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Living Trust Template PDF Free Download
Living Trust
A living trust form is a document that creates a legal entity (called a trust) to hold assets like real estate, money, and valuables.
The trust is created to manage assets during your lifetime and organize how your assets will be distributed in the event of your death.
Keep in mind that for the type of trust referred to by the names above, you transfer ownership of assets to the trust during your lifetime.
This is different from a testamentary trust, which is created as part of a last will and testament and only takes effect after the grantor’s death.
Roles
Beneficiary – The individual that benefits from the Trust at the time of the Grantor(s) death.
Settlor (or Grantor/Settlor) – The individual setting up the trust, the “trust maker”.
Trustee – The individual that is in charge of the trust. This person will have complete control over the assets and can make decisions about whether buy, sell, or do any other related responsibilities.
Successor Trustee – The person who steps in only if the Trustee cannot make decisions for themselves and can make decisions on behalf of the Beneficiary.
Usually requires a note from a medical physician in order for this role to become into effect.
How to Create a Living Trust
After an individual usually gets a price quote from their attorney between $800 to $2,000 they often ask themselves…
Can I Make My Own Living Trust?
Yes! Although it is always recommended to speak with an estate planner to ensure you are making the best available choices for your needs.
But anyone can make a Living Trust on his own.
Step 1 – Identifying Your Property
Take an inventory of all the property you would like to transfer into the Trust.
This should include all real estate, personal property, and any other rights to property (if any) that you would like to transfer to someone else at the time of your death.
Step 2 – Selecting the Beneficiaries
The Beneficiary(ies) is the individual(s) that will be inheriting the property after the death of the Grantor.
This will not go through the Probate process meaning that no family members will have the right to object to who is listed.
Step 3 – Select a Successor Trustee
This is the person that would handle the property in the event of the incapacitation or death of the Grantor.
Commonly this is the same person as the Beneficiary but depends on the circumstance of the Trust (such as if the Beneficiary is a minor).
Step 4 – Writing the Form
Once all the roles are set in motion the form is ready to be created. You will need to choose between 1 of 2 types:
Irrevocable – Cannot be changed and acts as a separate entity from the Grantor which means they no longer are considered the owner.
Revocable – This can be modified at any time and the Grantor may also act as the Trustee and make any type of decision about the asset as necessary.
You can download any of the forms in Adobe PDF, Microsoft Word, or Open Document Text and begin completing with your personal details.
Step 5 – Signing the Form
The form is not required but highly recommended to be signed in the presence of a Notary Public.
The sole responsibility of a Notary Public is to ensure that documents are signed and that the individuals signing are who they claim to be.
Therefore this type of authorization guarantees to all the parties involved that the individuals who signed were able to think competently and that the signatures are genuine.
Step 6 – Storing a Living Trust
After a Living Trust has been completed, signed, and notarized an original copy should be kept by all parties involved in the document.
Unlike a Will, this form does not need to be registered or signed with any government office and is to be solely held by the Grantor(s), Trustee(s), and Beneficiary(ies).
Income Taxes
Irrevocable – The grantor does not pay individual income taxes under the typical IRS Form 1040.
The trust pays its taxes either through IRS Form 1041 or issues the Grantor a K-1 (IRS Form 1065)
Revocable Trust – The income flows through to the Grantor and will appear on their annual IRS Form 1040.
Liability
Irrevocable – All assets are out of reach from any lawsuit or creditor of the Grantor.
Revocable – All assets are subject to the Grantor’s creditors.
Medicaid (Nursing Home)
Irrevocable – If assets are placed in the trust at least five (5) years before entering a nursing home they will not be subject to seizure.
Revocable – The assets are not protected and are liable to seizure by a nursing home.
Modifications
Irrevocable – No changes, amendments, or termination is allowed in most states.
For example, in New York under § 7-1.9, the Grantor may terminate or amend a trust as long as the Beneficiaries agree to the changes.
So it’s important to research your respective State laws.
Revocable – Any type of change or termination can be made by the Grantor at any time.
Ownership
Irrevocable – The Grantor is not the owner of the assets placed in the trust.
Revocable – The Grantor is the owner of the assets placed in the trust.
Trustee
Irrevocable – The Trustee is legally known as the person who holds title to the property on behalf of the trust beneficiaries.
The trust is considered to be a separate entity and therefore the Grantor cannot be the Trustee.
Revocable – The Grantor may also be the Trustee and continue to make any decision related to the property.
| Author | – |
| Language | English |
| No. of Pages | 39 |
| PDF Size | 8 MB |
| Category | Form |
| Source/Credits | theacademy.sdsu.edu |
Living Trust Template PDF Free Download