*Secondary trustee(s) name(s)
*Asset list
*Distribution terms and allocation amounts

STEP 4: TRANSFER CHOSEN ASSETS INTO THE LIVING TRUST

After the living trust is completed, an additional step of signing over assets to the trust is necessary to avoid legal complication. This means ownership of all assets within the trust must become part of the trust. For example, a home's title deed can be signed over to the trust, bank accounts can be changed to list the trust as the owner etc. There may or may not be filing fees for some of the reclassification of assets.

THE PURPOSE OF LIVING TRUSTS:

Living trusts serve several purposes as made evident by the many types of living trusts available. Essentially, living trusts are created by living persons to pre-determine who will distribute assets after the death of the primary trustee and how it will be done. Living trusts provide legal protection to the passage of ownership after death of the grantor.

*Allows beneficiaries and/or trustees to avoid probate court
*Makes possible non-taxation of transferred funds if a trust company is owned by the trust
*Assigns a fund executor to carry out the provisions set forth in the living trust
*Defines how assets are distributed, to who they will be distributed and by whom
*Creates a legal entitlement to assets

TYPES OF LIVING TRUSTS:

There are two primary types of living trusts, revocable and irrevocable. These types of trusts are distinguished by their ability to reverse decisions set forth by the initial trust. For example, in a revocable living trust, trustees can be removed or added whereas in an irrevocable living trust, this is not the case. In addition to these two primary trusts are several sub-types of living trusts that include the following according to livingtrustnetwork.com of the following trust sub-types determine how assets are used, allocated and treated when the terms and instructions of the living trust are implemented.

*A/B Trusts
*Asset protection trusts
*By-pass trusts
*Charitable trusts
*Generation skipping trusts
*Grantor trusts
*Life insurance trusts

SUMMARY:

Creating a living trust can be done relatively easily but takes a few important considerations regarding the distribution of one's assets after death. These types of trusts come in several types as outlined above and are ideally prepared by an attorney familiar with and skilled in the creation of such documents. To create less expensive living trusts, online legal trusts may be obtained through state specific documents available through websites such as lawyers.com. When the purpose and use of the trust is defined, the document is then customized, signed by the relevant parties such as the grantor and trustees and then assets are legally reassigned to the trusts ownership.

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Sources:

http://trusts-estates.lawyers. com/State-Living-Trust-Forms.h tml

http://livingtrustnetwork.com/ revocable-living-trusts/types- of-trusts.html

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