How to Draft a Living Trust in Missouri
Creating a living trust in Missouri is a significant step toward managing your assets and ensuring they are distributed according to your wishes after your passing. A living trust allows you to maintain control over your assets while you are alive, and it can bypass the lengthy probate process upon your death. Here’s a comprehensive guide on how to draft a living trust in Missouri.
1. Understand the Types of Living Trusts
Before drafting a living trust, it's essential to understand the different types available. The two most common types are:
- Revocable Living Trust: This type allows you to retain control of your assets and make changes as needed during your lifetime.
- Irrevocable Living Trust: Once established, this trust cannot be changed or revoked. It can be beneficial for tax purposes or asset protection.
2. Determine Your Assets
Next, list the assets you wish to include in your living trust. This may consist of:
- Real estate properties
- Bank accounts
- Investments
- Life insurance policies
- Personal belongings of significant value
Knowing what assets you want to place in the trust is crucial for drafting an effective document.
3. Choose a Trustee
The trustee is responsible for managing the trust's assets. You can be your own trustee or appoint someone else, such as a family member, friend, or professional fiduciary. If you choose someone else, designate a successor trustee who will take over management of the trust after your death or if you become incapacitated.
4. Draft the Trust Document
When drafting a living trust in Missouri, you may choose to do it yourself or consult an estate planning attorney. The trust document should include:
- Your name and address
- The name of the trust (typically your name plus “Living Trust”)
- A statement declaring the trust is revocable or irrevocable
- Details of the trustee and successor trustee
- Information about the assets included in the trust
- Instructions on how the assets should be distributed after your death
5. Sign the Document
In Missouri, a living trust must be signed and dated by you, the grantor. It’s recommended to have at least one witness present, and although it is not required, obtaining a notary public’s acknowledgment can add an additional layer of legitimacy.
6. Fund the Trust
After creating the trust, the next step is to fund it. This means transferring ownership of your assets into the trust. You can do this by:
- Re-titling real estate property in the name of the trust.
- Changing the beneficiary designations on bank accounts and insurance policies.
- Transferring stocks or bonds directly into the trust.
Funding the trust ensures that your assets will be managed according to your wishes.
7. Regularly Review and Update the Trust
Life changes such as marriage, divorce, the birth of a child, or significant asset acquisitions may necessitate updates to your living trust. Periodically review and amend the trust as needed to ensure it reflects your current wishes and circumstances.
Conclusion
Drafting a living trust in Missouri is a straightforward process that can provide peace of mind and ensure your estate is managed according to your wishes. Whether you choose to draft the trust yourself or seek legal assistance, understanding the steps involved will help you make informed decisions about your estate planning.