A living trust is a powerful way to manage what happens to your assets when you pass away. It can help avoid probate, give you more privacy, and make things easier for your loved ones. But before you move forward with setting one up, there are a few things we recommend doing first. Getting these steps out of the way early makes the trust creation process smoother—and ensures it truly reflects your goals.
1. Make a List of What You Own
Before setting up a living trust, it helps to know exactly what you have. We recommend making a list of all your significant assets, including:
- Your home and any other real estate
- Bank and investment accounts
- Business interests
- Vehicles
- Life insurance policies
- Retirement accounts (although these usually don’t go into the trust)
This list doesn’t need to be perfect, but it should be clear enough to help you (and us) understand what should be transferred into the trust.
In the process, you might find that some assets are owned jointly or have named beneficiaries. These details matter. For example, accounts with transfer-on-death designations may not need to be part of the trust. Once you’ve gathered this information, we’ll help you sort through it and decide what belongs in the trust and what doesn’t.
2. Think About Who Should Receive Your Assets
The next step is deciding who should benefit from your trust and how. It may sound straightforward at first—most people want their children, spouse, or other family members to receive their assets. But there are some choices to consider.
Ask yourself:
- Should everyone receive an equal share?
- Is there anyone who might need extra support?
- Would staggered distributions over time be better than a lump sum?
Some people want to provide for a child with special needs or protect an inheritance from being spent too quickly. Others want to make charitable gifts part of their plan.
There’s no one right way to do this. We’ll help you think through your options and make decisions that reflect what matters most to you.
3. Choose the Right Trustee
A trustee is the person (or institution) who manages the trust when you can’t or after you pass away. This person will follow the instructions you’ve laid out, manage the assets responsibly, and distribute property to your beneficiaries.
You’ll want to choose someone you trust to follow your wishes and handle the responsibility. For many people, this is a spouse, adult child, close friend, or trusted professional. You can also name a backup trustee in case your first choice is unable or unwilling to serve.
If you’re not sure who the right person might be, don’t worry. We can walk you through what the trustee role involves so you can make a decision you feel confident about.
4. Consider Other Estate Planning Documents
A living trust is a big part of your estate plan, but it isn’t the only part. To make sure everything works together, you’ll also want to have a few other documents in place:
- Pour-over will: This catches any assets that weren’t transferred into your trust.
- Power of attorney: This lets someone manage your finances if you’re unable to.
- Advance health care directive: This outlines your wishes for medical care and names someone to speak for you if needed.
Having these documents ready ensures that you’re covered from all angles—not just what happens after you’re gone, but what happens if you become ill or incapacitated. We’ll help you put everything together in a way that fits your life.
5. Talk With a Trust Attorney
Once you’ve done some thinking and gathered the information above, the next step is to talk with an estate planning attorney. You don’t have to have everything figured out before you meet with us.
At OC Wills & Trust Attorneys, we’ll listen to your concerns, explain your options in plain English, and make sure your trust works the way you want it to. We’ll also take care of the paperwork and make sure everything is legally sound.
Set the Stage for a Thoughtful Living Trust
Taking time to think through these steps before setting up your living trust can make the process easier and more effective. You’ll feel more prepared, and we’ll be able to guide you with greater clarity. If you’re ready to get started or have questions, reach out to OC Wills & Trust Attorneys. We’re here to help you protect what matters—now and in the future.
