What is Revocable Living Trust Drafting?
A revocable living trust is the process of assigning assets to beneficiaries during your lifetime so that your wishes are fulfilled when you pass away.
Since a revocable living trust avoids the probate process, it enables faster transfers. Another benefit of a revocable living trust is that you can change its terms whenever you like.
However, drafting a revocable living trust is essential to do properly to ensure it meets your requirements and is legally sound.
Read the rest of this article for information about key terms included in a revocable living trust, how to draft it for accuracy, and how a qualified lawyer can assist you with the revocable living trust drafting process.
What Key Terms Should Be in a Revocable Living Trust?
A revocable living trust usually contains the following key terms:
- Parties. The parties involved in the revocable living trust, such as the grantor, trustee, and beneficiary, must be defined. The grantor sets up the trust, the trustee manages it, and the beneficiaries receive the grantor’s assets.
- Principal. This explains what assets are in the living trust.
- Funding. This refers to the transfer of assets into the trust.
- Amendment provision. The agreement must specify that the grantor can modify the trust at any time.
- Incapacity clause. This specifies how a successor trustee manages the trust if the grantor is incapacitated.
- Distribution. This provides clarity about how the grantor’s assets will be distributed among the listed beneficiaries when the grantor dies.
- Termination. This specifies when the trust will end. It usually terminates when the final asset distribution is completed.
What are Tips for Drafting a Revocable Living Trust?
If you need to draft your revocable living trust, there are some important tips to consider.
Check and Update Beneficiaries
You should check that all beneficiaries are listed properly, especially if there have been significant changes in your life. This will ensure that you’re still happy with all the people who will benefit from your trust assets.
Title Your Assets Correctly
Ensure that the assets are all titled properly so that they are legally valid. If you already have a list of assets, review it in case you want to add new ones, such as financial accounts or real estate.
Confirm Your Trustees
You should check that successor trustees who will take over on your behalf if something happens to you are available to fulfill their duties. Check that their life situations haven’t changed significantly enough to make them unable to complete their obligations.
Make it Consistent
When drafting your revocable living trust, you should align it with all your other estate planning documents to prevent confusion after your passing that can result in disputes.
Avoid Prohibited Assets
There are some assets that shouldn’t be included in a revocable living trust, such as your retirement account. This is because you’ll have to remove them from your name to retitle them in the trust’s name, which can have significant tax consequences.
Make it Clear and Comprehensive
If there’s any ambiguity or missing details in your revocable living trust, it can result in disputes or even invalidate the trust. This is why you need to ensure every section in the trust document is clear and transparent.
Collaborate with Professionals
When writing your revocable living trust, you should work with your estate-planning attorney, tax professional, and accountant to ensure all terms are valid and you’re not missing anything important.
How Can a Lawyer Help You with Revocable Living Trust Drafting?
Although you can write your revocable living trust yourself, it could result in pitfalls or disputes. Hiring a lawyer can assist you in various ways because they’ll:
- Align the trust with your current goals and wishes.
- Avoid including any outdated provisions.
- Verify that the trust is legally compliant with all state and local laws to minimize your risk of legal disputes.
- Review your trustees and beneficiaries so that you’re still happy with your choices.
- Check that your assets are correctly titled to be valid.
- Match the trust to all documents in your overall estate plan, such as your will.
- Identify any tax issues that could affect your estate plan.
- Minimize your risk of future disputes, such as by avoiding any vague language in the trust.
Where to Find a Lawyer for Revocable Living Trust Drafting
If you need to hire a lawyer for help with revocable living trust drafting, you don’t have to cold-call traditional law firms in your area. You can quickly find a lawyer on an online legal platform that connects you with a range of lawyers who have the expertise to help you with your concerns.
ContractsCounsel is one of the biggest online legal marketplaces that gives you access to a network of vetted lawyers. The lawyers are experienced in revocable living trusts to assist you with drafting and reviewing yours for accuracy.
To request that a lawyer on the platform drafts your trust document, here are the easy steps to follow online.
1. Go to the ContractsCounsel marketplace, where you can post your project for free.
2. Include some details of what you require, such as what assets are included in the trust or key terms you’d like to include. This will help you to connect with the most suitable lawyer.
3. Wait for bids. You’ll receive multiple bids from lawyers directly on the platform who can assist you.
4. Once you receive the lawyer bids, you should review the lawyers' profiles. There’s lots of info on the platform to help you select the best lawyer, such as their location, client ratings, years of experience, and field of expertise.
5. Connect with a lawyer you think is best suited to your requirements and hire them to draft your revocable living trust.
