Estate Planning is how we plan to transfer our assets to someone upon our death.
There are three options. You can:
Your Living Trust is a document you create to hold title to your assets. You still own and control all the assets, but upon your passing, the Living Trust's assets do not go to Probate (the Court system).
With a Living Trust, you can:
A Will is a document that goes through Probate (the court system). Since you want to AVOID Probate, why do you need a Will along with the Living Trust? The answer is because sometimes people do not transfer all their assets into their Living Trust and therefore the Will acts as a "safety net" to catch those assets and transfer them into your Trust. Thus, the Will gets the nickname "Pour-Over Will" because it leaves all your Probate assets to your Living Trust.
The Living Trust and Will needs to be signed in the presence of a notary public on the date written on your Trust.
For example, The John Doe Living Trust dated January 15, 20xx should be signed in the presence of a notary public on January 15, 20xx. The Notary should attach the proper Notary form for your state to the Trust.
Look at your Living Trust as a “bucket” which you need to fill up with your assets. You do not want an "empty bucket".
After you have set up your Living Trust, transfer your assets into your Living Trust by changing the name on each document of title. This takes time, so make a list of all of your assets and one by one transfer their title into your Living Trust.
Congratulations! You have created and funded your Living Trust. Just continue to manage your assets as you always have.
As Trustee, you have complete control over all the assets in your Living Trust. Remember, your Living Trust is an Estate Planning document, and as such, it directs your assets upon your passing. During your lifetime, you still have full ownership and control of all your assets.