Can You Set Up a Trust Without An Attorney?

Published March 25, 2024

Setting up a trust account can help you pursue financial peace of mind and freedom. A trust is simply a relationship in which one person gives another the right to hold title to specific assets for the benefit of someone else. It can be as straightforward or comprehensive as the situation requires.

Some US states even grant oral trusts. This means that trust can exist simply by the parties’ understanding without having anything recorded on paper.

Can you set up a trust without an attorney? This article will answer that question. We will discuss its intricacies and the smart move for handling trust accounts. Let’s get started.

Do You Need To Set Up a Trust Without an Attorney?

The answer is no. You do not require an attorney to craft a trust. Yet there are some important considerations when you decide to make it yourself. You must guarantee that your trust aligns with your state’s laws while meeting your needs.

How Can I Make a Trust Without an Attorney?

There are many kinds of trust. The most common is the revocable living trust.

This kind of trust is a legal document that replaces a last will in your estate plan. A revocable living trust is generally more complex and expensive than a will. Yet, you may choose it to avoid the probate process of winding down your estate. It’s a lengthy, costly, and public process. Anyone can rule the size of your estate. Also, who’s acquiring an inheritance?

You may not need an attorney to craft a trust if you have few assets and beneficiaries. Plenty of books and online tools can aid in making estate planning documents. These tools can range from simple templates to interactive Q and A systems.

Still, in making a trust without an attorney, you will require the following data:

1. The person creating the trust. Acknowledged as the grantor or settlor.
2. The person that will manage it. Acknowledge as the trustee.
3. The person who will manage the trust if the trustee can’t do so. Acknowledged as the successor trustee.
4. The people who will acquire distributions of the trust property. Acknowledged as the trust beneficiaries.
5. The person who will manage any property you leave to minors is acknowledged as the trustee of the child’s inheritance. They serve in that role until the child reaches the appropriate age to receive the property.

Cases Where You Might Want To Hire a Trust Attorney

Deciding whether to craft a trust yourself can be challenging. Still, an attorney is expensive. Yet, making a mistake could open up unintended consequences. The following are the vital things to consider when deciding:

1. The complexity of your estate. The nature of your assets and to whom you leave them can make your estate complex. For one, you may require custom drafting when planning for minor children.
2. The laws in your state. States have varying requirements for crafting a valid trust. For one, in some states, you must sign your trust before a notary and witnesses. Other states demand a notary.
3. The tax implications of your trust. It’s vital to consider your potential estate tax liability when making a trust. For instance, does your estate exceed the federal estate tax exemption? The generation-skipping tax is also something you must learn.

What Are the Risks of a Do-It-Yourself Trust?

Your situation may be unique. So, there may be better options than a one-size-fits-all approach to planning your estate. Even a tiny mistake in the terms of your trust can elicit dilemmas for your heirs.

These are the risks that are given when you decide to trust yourself:

• A third party often does not look at your DIY trust until you pass away. A court or a trustee can’t ask you to explain any ambiguity in your instructions. There are some possibilities that your wishes may not be fulfilled.
• Needing a court to interpret your trust will make trust administration more costly.
• In addition to creating the trust document itself, you must also fund it. Funding the trust is the process of retitling your assets in the name of the trust. An unfunded one could cause your estate to go through probate.