Setting up a living trust in Indiana is simple, although you might spend some time thoroughly thinking out your estate plan. Because it costs money to establish a trust, you may want to ensure that it meets your needs ahead of time.
Make a list of your assets
Estate planning is easier when you take an inventory of your assets to keep track of how you’re dividing your property. Failing to make a list could result in a mistake where you assign more than one beneficiary. If you were to name a different beneficiary in your will for an asset you put in a trust, it would go to the trust’s beneficiary.
Choose a type of trust
Different types of trusts have unique rules, so you may want to learn about your options before settling on a particular type. Living trusts are those that you create while you’re alive. Testamentary trusts, a less common choice, enact after your death. You would outline the terms and what assets will go into the testamentary trust in your last will and testament.
Other types of trusts include:
- Pet
- Special needs
- Charitable
- Charitable lead
- Charitable remainder
- Grantor retained annuity
- Spendthrift
Find a trustee
The trustee manages the trust in accordance with its terms. For some types of trusts, you could name yourself as the trustee, but you may want to choose a successor trustee to take your place after your death. Aside from individuals, you could designate a corporate trustee or an attorney as your trustee.
Create the trust agreement
Once you decide how you want your trust to function, it is time to put it into writing. Keep in mind that Indiana requires that you sign it in front of a notary.
The research and planning phases are the longest part of setting up a living trust. Once you have a better idea of how you want to pass on your assets, you could make a more informed decision on what type of trust to establish.
