How to Set Up a Revocable Living Trust

A revocable living trust is a legal document that holds your property during your lifetime and passes it to the people you choose after you die, without the court process called probate. The word revocable means you can change or cancel the trust at any time while you are alive and of sound mind. The word living means the trust starts working the moment you sign it, not after you die. Many seniors set up a living trust to spare their family the cost, delay, and public exposure of probate court, and to keep more control over what happens to a home, savings, or treasured belongings.

A living trust does three jobs at once. First, it names you as the trustee while you are alive. So you keep full control of your own money and property. Second, it names a successor trustee to step in if you become unable to manage your affairs because of illness or memory loss. Third, it names the people or charities who will receive what is left after you die. Because the trust holds title to the property, the court does not need to oversee the transfer. Your successor trustee follows the instructions in the trust and distributes assets in weeks rather than the many months a probate case can take.

Many families think trusts are only for the wealthy. That has not been true for a long time. In most states, the cost of creating a trust is a few hundred to a few thousand dollars. And it pays for itself many times over when compared with probate fees, attorney fees, and the months your family would otherwise spend in court. A trust also keeps your final wishes private. A will, once it goes through probate, becomes a public record that anyone can read at the courthouse. A trust does not.

This guide walks through choosing a trustee, picking the right kind of trust for your situation, deciding who gets what, getting the paperwork drafted, and signing in front of a notary. We also explain what to do with the trust document after you sign it so it actually works when needed. Plan to spend two or three weeks from first phone call to signed trust. Most people meet with an estate planning attorney once to gather information and once to sign.