5 Decisions To Make Before Starting Your Living Trust Plan

A living trust is a valuable estate planning tool that will help you provide for your loved ones while also making things easier and more private. And with reliable and affordable online services, just about any American can use this effective solution. But before you jump into putting your living trust into writing, here are five decisions you'll need to make. 

1. Decide What to Include.

The protection offered by a living trust comes by transferring ownership of assets into it rather than keeping them personally. However, not all assets must be placed in the trust. You (and possibly your spouse) will need to decide what to transfer and what to keep out. Major assets like vehicles and real estate are prime candidates, but including lesser items could make things unnecessarily complex. 

2. Decide Whether to Use Joint Trusts.

You and your spouse can form a joint trust or use individual trusts. A joint trust makes things simpler and less expensive — particularly for shared assets like the family home. However, it means you must both agree on how to distribute assets and how to share individually-owned items. If you opt for separate trusts, you can still make a harmonious overall family plan using them. 

3. Decide Who Is the Successor.

When you create a trust, you are the trustee and make financial decisions for the trust. But when you are no longer able to fulfill this role, who should be your successor trustee? For some, this choice is obvious (such as a spouse), but others may need to weigh various individuals for the right qualities. 

4. Decide Who Will Inherit.

Of course, protecting your assets for your passing includes deciding who should get them when you are gone. This list could be long, or it could be short, depending on your estate and goals. Don't forget to choose contingent beneficiaries, which would inherit trust assets in the event the original beneficiaries cannot do so. 

5. Decide If You Need Custodians.

If you want to leave anything in the trust to your children or grandchildren, keep in mind that minors cannot directly inherit assets. Those trust assets must generally be managed by a property custodian. This person is often one or both parents of the child, but it can be anyone you wish to temporarily manage affairs for that child's inheritance. 

By deciding these five elements before you begin, your trust planning will be smoother and simpler. Want to know more about designing and drafting your trust? Start by checking out online living trust services for yourself today.