Trust drafting is as complicated as one’s family dynamic. Whether you consider yourself smart, educated, uneducated, prudent, or otherwise, avoid the temptation of DIY methods.
Of courses, saving money is an attractive feature when you found a trust drafting program online that costs $49.
Drafting your own trust is like performing surgery with a YouTube tutorial—technically possible, but you probably won’t like the outcome.
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Trust Drafting Steps
- Determine the Purpose of the Trust. Decide whether the trust is for asset protection, estate planning, tax efficiency, charitable giving, or another specific goal.
- Choose the Type of Trust. Select the appropriate trust structure (e.g., revocable vs. irrevocable, living trust, testamentary trust, asset protection trust).
- Select the Trustee. Choose a responsible individual or institution to manage the trust assets according to your wishes.
- Identify the Beneficiaries. Clearly name the individuals or entities who will benefit from the trust and how/when they will receive distributions.
- Identify Assets. Identify which assets will be placed in the trust (real estate, accounts, investments, etc.) and ensure proper legal transfer.
- Draft the Trust Document. Prepare a legally sound trust agreement that outlines the terms, powers, and responsibilities of the trustee and the distribution rules.
- Review State and Tax Laws. Ensure the trust complies with applicable state laws and consider federal and state tax implications.
- Sign and Notarize the Trust. Execute the trust with all required signatures and notarization to make it legally valid.
- Fund the Trust. Officially transfer ownership of the designated assets into the trust (deeds, title changes, account re-titling, etc.).
- Review and Update Periodically. Revisit the trust regularly or after major life events (marriage, divorce, birth, death, asset changes) to ensure it still meets your needs.