A living trust lawyer in Des Moines, IA is a valuable resource to have on hand if you’re finally ready to start planning for your future. Not everyone thinks about what should happen to their possessions once they die – but creating a will or a living trust is a great way to make sure your family is taken care of after you pass on.
A will is generally pretty simple to put together and manage, but a living trust takes a bit more work. Why would someone choose to create a living trust, and why would they want to get a living trust lawyer involved? The best way to answer these questions is to understand what makes living trusts worth the extra effort, and why a living trust is so important.
What is a Living Trust?
A living trust is a set of instructions that outline all of your assets and what should be done with those assets upon your death. On the surface, it sounds pretty similar to a will, but there’s a catch: A will is only active after you die. A living trust, on the other hand, is active the moment you sign on the dotted line. It’s where the term “living” comes into play – a living trust can be adjusted while you’re still living.
Because a living trust is active the moment you create it, you can add or remove assets whenever you wish, assuming you’re the trustee (the person elected to manage the trust). You can always opt to make an irrevocable trust, which means there’s no changes allowed – but those are a different story, and usually only necessary for really big estates. You can reach out to a qualified living trust lawyer in Des Moines, IA for more information on those.
Sounds great. Why do I need a lawyer?
It’s possible to create your own living trust. It’s also possible to skydive without a parachute. You really shouldn’t try either.
A living trust lawyer is a valuable resource for when you’re trying to set up important instructions for your family, friends, and other beneficiaries. Living trusts are complicated to set up, and there’s plenty of opportunity to make a critical mistake and void the whole thing. Fortunately, the right lawyer can help you navigate through all the legal hoops necessary to ensure your trust is legally enforceable.
Creating a living trust is a complicated procedure, and a living trust lawyer can help you keep your stress levels in check. They can also help you include any special instructions for family members who were relying on you before your death. Elderly parents, young children, and disabled adults can all be properly cared for in your trust if you reach out to an accomplished living trust lawyer.
4 Important Decisions You Need to Make When Creating a Living Trust
Having a trust can help prevent your family from having to go through probate to receive their inheritance when you are gone. While creating a living trust can be stressful, those at Law Group of Iowa work to make the process easier for you. The following are some decisions that a living trust lawyer in Des Moines, IA, can help you make.
1. What Should You Include in the Trust?
You have likely acquired many items throughout your life, but not all of your property needs to be included in your trust. It may be important to determine what will happen to family heirlooms, but you can leave out items that you consider trivial. Your lawyer can help you make a list of valuable items that you want to include in the document.
2. Who Will Inherit Your Assets?
One of the most important decisions you need to make is who will be receiving your property. For some items, like a ring passed down to eldest daughters, determining who it will go to is easy. For other assets, you may have more trouble choosing the best recipient. Luckily, when you are working with a living trust lawyer in Des Moines, IA, you can update your trust if you change your mind later.
3. Do You Need a Property Guardian?
If you are leaving assets to a minor, then you may need to appoint a property guardian, trustee or property custodian. The person that you choose will be in charge of these assets until the inheritor reaches a certain age, usually 21. It is important that this is someone who is responsible and reliable because depending on which route you take, the person chosen will have various responsibilities and may be able to use the assets under certain circumstances, such as health expenses or schooling. At Law Group of Iowa, a living trust lawyer in Des Moines, IA, can help you determine the best option.
4. Are You Creating a Shared or Individual Trust?
While you can always create an individual trust, many married couples choose to use a shared trust instead. This is often the best choice if you and your spouse own property together. If you decide that a shared trust is the right way to go, then a lawyer can help get both of you on the same page about where your property will go. However, if you would prefer, you and your spouse can also create separate trusts for your individual assets.
How to Build a Trust
Start By Getting Help
Unless you have a legal background, you probably don’t know all the rules involved with creating a trust. You should seek help from your elder law lawyer in Des Moines, IA or the Law Group of Iowa to get started. Technically, you are allowed to build a trust on your own if you feel comfortable doing so.
Create Trust Documents
Trust documents are essential; they outline your assets, guarantor, beneficiaries to your assets, trustees in charge of your trust, successor trustees to take over for original trustees if they become unavailable and any other important information regarding the trust. You should also consider getting a certificate of trust, which proves the existence of your trust and the validity of the people involved in it.
Sign Your Documents
None of your trust documents are legally binding without your signature, and you also need the signatures of at least two uninvolved witnesses. You aren’t legally required to notarize trust documents in every state, but it’s still wise to do so; this can help prevent instances of fraud. You should speak with your elder lawyer in Des Moines, IA to learn what your state’s laws are.
Set Up a Bank Account
When your trust documents are finished, you should move on to setting up a bank account. This account will provide funds to your beneficiaries, and it’s wise to create an entirely new account specifically for your trust. If you’d rather use an existing account, speak with your financial institution to see if you can.
Assign Beneficiaries
Next, you need to designate beneficiaries who can receive your assets if you pass away. One of the most notable parts of a trust is that your assets are payable on death, which means your beneficiaries don’t need probate in order to access the trust. Beneficiaries are most commonly friends, family members and heirs, but you can legally appoint almost anybody to receive your assets in a trust. The Law Group of Iowa can help you determine who should be included.
Move Your Assets to Your Trust
Of course, you’ll need to move assets into your trust after you’ve named beneficiaries. Assets typically include deeds to properties or houses, vehicle titles, certificates of authenticity or ownership to valuables, family heirlooms and any other important possessions you own. If you don’t know how to move these assets, your elder law lawyer in Des Moines, IA can help.
Reach Out to Law Group of Iowa Today
If you’re ready to start planning out your living trust, you’ve come to the right place. At Law Group of Iowa, we know how important your family and friends are, and we’re committed to making sure they’re looked after upon your death. Reach out to us today for more information, and see how a living trust lawyer in Des Moines, IA can help you plan for tomorrow.
7 Benefits Of Setting Up A Living Trust
Setting up a living trust can be a smart move for anyone looking to protect their assets, but you’ll need a Des Moines, IA living trust lawyer to get started. While the concept might seem daunting at first, understanding the benefits can help clarify why a living trust is a valuable tool in estate planning. Here are some key advantages of setting up a living trust.
1. Avoiding Probate
One of the most significant benefits of a living trust is that it helps your estate avoid the probate process. Probate can be lengthy, costly, and public. By placing your assets in a living trust, you ensure they are transferred to your beneficiaries without the need for probate, allowing for a quicker and more private distribution of your estate.
2. Maintaining Privacy
Unlike a will, which becomes a public record once it goes through probate, a living trust remains private. This means the details of your assets and how you wish to distribute them are kept confidential. This privacy can protect your beneficiaries from unwanted attention and potential disputes among family members or creditors.
3. Providing Flexibility And Control
A living trust offers you flexibility and control over your assets while you are alive and after you pass away. This ability to amend the trust ensures that your estate plan can adapt to changes in your life, such as new family members, financial changes, or shifts in your personal preferences.
4. Managing Your Affairs If You Become Incapacitated
A living trust can include provisions that allow your designated trustee to manage your affairs if you become incapacitated. This means that if you are unable to handle your financial matters due to illness or injury, your trustee can step in and manage your assets according to your instructions.
5. Reducing The Risk Of Legal Challenges
Since living trusts are more difficult to challenge than wills, they provide a more secure way to ensure your wishes are carried out. Wills can be contested on various grounds, such as claims of undue influence or lack of capacity. A living trust, however, typically undergoes a more rigorous process to establish and is therefore less susceptible to legal disputes.
6. Simplifying The Estate Administration Process
For your loved ones, dealing with your estate after your passing can be a complex and emotional process. A living trust can simplify this process significantly. Since the assets in a living trust are not subject to probate, your trustee can distribute them to your beneficiaries quickly and efficiently.
7. Potential Tax Benefits
By setting up certain types of trusts within your living trust, such as a bypass trust or a marital deduction trust, you can take advantage of tax-saving strategies that reduce the overall tax burden on your estate. Consulting with a financial advisor or living trust attorney can help you structure your trust in a way that maximizes these tax benefits.
Contact Us Today
Law Group of Iowa is a full service legal firm, and we have experience across a broad range of practice areas. This multidisciplinary approach means we can approach your legal issues with a unique perspective that you won’t find anywhere else. Get in touch with us today to see what a Des Moines living trust lawyer from our office can do for you.
Des Moines Living Trust FAQs
Your Des Moines, IA living trust lawyer can help you plan your future and protect your legacy. At Law Group of Iowa, we have over 30 years of collective experience helping our clients with financial planning, estate planning, and probate. Now, it’s our turn to help you. Read on to get some answers to common questions about living trusts:
How Is A Trust Different Than A Will?
A trust and a will are both estate planning tools, but they serve different purposes and function in distinct ways. A will is a legal document that outlines how your assets should be distributed after your death. It becomes effective only upon your death and must go through probate, which is the court-supervised process of distributing your estate.
In contrast, a trust is an arrangement where one party, known as the trustee, holds and manages assets for the benefit of another party, the beneficiary. Unlike a will, a trust takes effect as soon as it is created and can provide benefits during your lifetime and after your death, bypassing the probate process.
What’s The Difference Between A Trust And A Living Trust?
The terms “trust” and “living trust” often cause confusion. A living trust is established during the trust maker’s lifetime and can be either revocable or irrevocable. This flexibility allows the trust maker to alter or dissolve the trust as long as they are alive and competent. Your Des Moines living trust lawyer can walk you through the deeper differences.
How Do You Start A Living Trust?
Starting a living trust involves several key steps:
Choosing the Type of Trust: Decide whether you want a revocable or an irrevocable trust based on your needs.
Listing Your Assets: Inventory all assets you wish to include in the trust, such as real estate, investments, and bank accounts.
Deciding on Beneficiaries: Determine who will receive the assets in your trust after your death.
Selecting a Trustee: Choose a reliable person or financial institution to manage the trust.
Creating the Trust Document: Work with an attorney to draft a trust document that outlines all terms of the trust.
Executing the Trust: Sign the trust document in front of a notary.
Funding the Trust: Transfer your assets into the trust’s name to make it operational.
How Much Money Do You Need To Have A Trust?
There is no minimum amount required to establish a trust. People often assume that trusts are only for the wealthy, but individuals with modest assets can also benefit from the organization and privacy that trusts offer. Whether it’s a small estate or significant holdings, a trust can be tailored to meet specific financial situations and goals.
How Can An Attorney Help Me With A Living Trust?
Attorneys play a crucial role in setting up living trusts. They help by:
Providing Legal Guidance: Explaining the types of trusts available and determining the best type for your situation.
Drafting Documents: Ensuring that all trust documents are legally valid and reflect your wishes accurately.
Avoiding Mistakes: Helping to avoid common pitfalls that could affect the trust’s effectiveness.
Asset Transfer: Assisting in the proper transfer of assets into the trust.
Ongoing Advice: Offering ongoing support as your financial situation or estate planning goals evolve.
Contact Our Team Today
At Law Group of Iowa, we’re committed to safeguarding your future. Contact us today, and see how a Des Moines, IA living trust lawyer from our office can help.
