How to Make a Family Trust

By Anna Assad

A living family trust is a plan that controls the assets placed into the trust fund. A revocable living family trust is an agreement you can end at any time before death. An irrevocable living family trust can't be terminated except under circumstances allowed by state law -- and you usually need a court order. Both types offer drawbacks and advantages, but family trusts are commonly revocable because the trust owners retain ownership rights to the assets. You can create a family trust for any purpose -- and you can serve as the trustee of the revocable family trust.

Step 1

Write down the assets you want to include in the trust. You can fund the trust with various assets such as your house, retirement accounts and cash.

Step 2

Select a trustee. If you decide to act as trustee, you still need to name a trustee to succeed you when you die. Pick a person you trust to manage the fund properly. Speak to the person about trustee duties to confirm she's able and willing to handle the responsibility.

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Step 3

Make a list of beneficiaries. Beneficiaries receive income and assets from the trust.

Step 4

Write down the trust's distribution rules. Include how often income is paid to beneficiaries and the amounts, and any restrictions on what the money can be used for.

Step 5

Write down the goal of the trust and what benefits you want to receive. Trusts provide tax benefits, for example, but the way the trust is set up determines for what tax breaks it qualifies.

Step 6

Select a trust name. Use the family name in the trust's name, such as "The Johnson Family Living Trust", to make placing assets in the trust's name easy.

Step 7

Contact an estate attorney. Go the official website of the state bar association to find a trust lawyer. Arrange to meet with the attorney. Bring the asset list, the beneficiary list, the trust's name, the trust's rules, the successor trustee's name and the trust's goals with you to the appointment. Ask the attorney to draft a trust agreement.

Step 8

Check over the proposed trust agreement. Notify the attorney of any errors.

Step 9

Sign the final trust agreement. Keep the original in a safe place.

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References

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How to Terminate a Family Trust Account

A family trust agreement manages the assets the family places into the trust for the benefit of the beneficiaries. The trustee manages the trust in accordance with the agreement's directions and rules. Family trusts often contain bank accounts, such as savings or checking, for money transactions and deposits. A family trust account may be closed by the trustee for various reasons, including to move the funds to another account or as part of the trust dissolution process. Regardless of the reason, the trustee must be the person who goes to the bank to terminate the account.

How to Name a Living Trust

A living trust is a plan in the form of an agreement that manages all the property you place into the trust while you're still living. A common estate-planning tool, a living trust is created by the preparation and execution of a trust agreement, a document that identifies the trust's owner, the trustee -- the person who oversees the trust -- and lists the trust's provisions. A living trust needs a name because the trust is the owner of all the assets placed into it. The name allows the trust's owner to identify the trust as the owner on property transfer papers, other legal documents and financial accounts.

How to Write a Last Will & Living Trust

A last will and testament sets out how your property is to be distributed after your death. A living trust, also known as an inter vivos trust, allows you to dispose of your property while you are still alive, as well as after your death. Many people use living trusts to avoid the delays of probate court and to avoid estate taxes.

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