In the world of estate planning, creating a trust is one of the most critical steps for protecting your assets, providing for loved ones, and managing long-term wealth. Since the organization of these documents depends on the nature of your estate—and your personal wishes—it’s not always easy to know how to approach the process. Besides consulting with an experienced estate lawyer, here are five general considerations that will help you build a trust with confidence. 

What Points Should Be Used As Guidelines When Creating a Trust? 

1. Wealth Goals  

There are many reasons to create a trust, so it’s important to identify your long-term goals. For example, you might primarily want to prevent the need for probate after you pass away. You might also use it to avoid double taxation or simplify your grandchildren’s tuition expenses. When you meet with your estate planning lawyer, start the conversation by reviewing these goals and how the document can be structured to achieve them. 

2. Revocability  

Trusts can generally be characterized as “revocable” or “irrevocable.” A revocable, or living, trust can be changed by you, the grantor, and may be preferable if you expect to adjust terms throughout your lifetime. However, an irrevocable trust cannot be changed and could be ideal if you want to shield your assets from creditors or establish protection against estate taxes.  

3. Trustee Selection

A trustee is an individual tasked with the responsibility of managing your affairs as outlined by the trust. If you form a revocable trust, you can act as the trustee while you’re alive. But once you pass away or become incapacitated, you’ll need a successor trustee to take over this role. When choosing a party, focus on candidates who are financially apt, responsible, and available to conduct affairs without bias.

4. Assets Included  

Before creating a trust, make a detailed inventory of your assets—including investment accounts, real estate, businesses, and other property. Reviewing this inventory with your attorney will help determine which assets should be listed in the trust. When including assets, remember to plan how the trustee should manage them and who will inherit them. 

5. Potential Revisions 

If you create a living trust, it's best to revisit it regularly—such as annually—to ensure no new elements go unaddressed. You should also consider revisions when significant life moments occur—such as marriage, divorce, new children, new business ventures, and out-of-state moves.

When you want to take the guesswork out of estate planning, turn to Larry J. Keller Attorney at Law. Practicing law in Waterloo, IL, for over three decades, this attorney knows how to address every element of estate planning—including trust formation. After getting to know your goals, attorney Keller will advise on solutions that serve you well today and into the future. Visit this attorney online to learn more about his estate and probate law services. To schedule a consultation, call (618) 939-8999.