5 Things To Have Prepared for Setting Up a Trust
We all want our loved ones to have a comfortable and secure future when we’re no longer around. Setting up a trust is one of the most effective ways to ensure your assets are available to help make their lives more manageable. However, starting a trust can be a complex process, and you’ll need to consider and prepare several things. We discuss these five important things you must prepare when setting up a trust below.
A Clear Understanding of Your Assets
Before setting up a trust, you must have a clear understanding of your assets. These assets include your financial assets, such as bank accounts and investment portfolios, and physical assets like your property, vehicles, and personal belongings. Make a detailed list of all your assets, including their estimated values and locations. Knowing all your assets in detail will help you determine how to distribute them among your beneficiaries.
Identification of Your Beneficiaries
Identifying your beneficiaries is also an essential step in setting up a trust. You must decide who you want to benefit from your assets and in what proportions. Create a list of your beneficiaries and how they relate to you, and ensure you have their full legal names and contact information. You should also consider establishing contingencies in case one of your beneficiaries passes away before you do.
Appointment of a Trustee
A trustee manages the trust and ensures your assets go where you want them to. This person could be a family member or friend, or a professional trustee if you want to reduce bias. Choosing someone who is trustworthy, responsible, and has your best interests at heart is vital. Additionally, consider appointing a successor trustee in case your primary trustee is unable to fulfill their duties.
Selection of a Trust Type
Several types of trusts exist, and each serves a purpose. Some trusts are revocable, while others are irrevocable. Some provide tax benefits, and others offer asset protection. Consult an experienced estate planning attorney to determine which trust type is best for your needs and objectives.
Preparation of All Required Documents
Another key thing you should prepare when setting up a trust is all the necessary paperwork for the decisions you must make. Setting up a trust requires several legal documents, including a trust agreement, a pour-over will, and funding documents. You and your attorney must carefully draft and customize these documents to your specific needs and objectives. Ensure you have all the necessary documents prepared and signed before funding your trust.
Setting up a trust can be an intricate process, but it’s essential for the long-term well-being of your loved ones and your assets. By having the above-listed things prepared, you can ensure a smooth and stress-free trust establishment process. Remember to consult with an experienced estate planning or living trust attorney to help you navigate the complexities of trust establishment. Our team at Vancouver Wills and Trusts will ensure your legal documents accurately reflect your wishes.