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Living trust creation checklist

A complete preparation guide before professional drafting and review. Work through each section once, then re-run it every 12 months and after major life events (marriage, divorce, birth, death, move, large purchase).

People and roles

Decide who plays each role before you talk to an attorney. Mismatched roles are the #1 source of trust amendments.

  • Grantor identityFull legal name, marital status, state of domicile, prior names used on titled assets.
  • Initial trusteeOften the grantor while alive and able. List co-trustee if married and titling jointly.
  • Successor trusteesAt least two backups in order. Avoid naming all siblings or an aging parent without a younger backup.
  • Primary beneficiariesFull legal names, dates of birth, addresses, relationship, percentages.
  • Contingent beneficiariesWhat happens if a primary predeceases — per stirpes, per capita, or named substitutes.
  • Guardianship for minor childrenPrimary guardian + backup. Discuss with each person before naming them.
  • Special-needs considerationsFlag beneficiaries receiving SSI/Medicaid so the attorney can draft a special-needs sub-trust and protect eligibility.
  • PetsCaretaker, funding amount, and instructions if you want a pet trust clause.

Assets and titling

Trusts only control what they own. Inventory everything, then plan how each asset will be retitled, assigned, or beneficiary-designated.

  • Real estateAddress, county/parcel #, deed location, mortgage holder, homestead status, recorded vs. unrecorded.
  • Bank and brokerage accountsInstitution, account number, current titling, POD/TOD designations, joint ownership flags.
  • Retirement accounts (401k/IRA/Roth)Do NOT retitle these to the trust during life — name beneficiaries directly. Trust as beneficiary requires SECURE-Act-aware drafting.
  • Life insuranceCarrier, policy #, owner, current beneficiary, death benefit, whether ILIT is appropriate.
  • AnnuitiesOwner, annuitant, beneficiary, surrender period — tax treatment differs from life insurance.
  • Vehicles and titled personal propertyState titles, boats, planes, trailers — trust funding may not be worth the friction in many states.
  • Business interestsOperating agreement, buy-sell, transfer restrictions, S-corp election impact if trust becomes a shareholder.
  • Digital assetsCrypto wallets, domains, social accounts, cloud storage, password manager, email account access plan.
  • Personal property of meaningful valueJewelry, firearms (state law applies), art, collectibles — itemize and tag for memorandum of personal property.
  • Debts and liabilitiesMortgages, HELOCs, business loans, co-signed debts — these survive death and reduce the estate.

Funding the trust

A signed trust is a paper trust until it owns the assets. This is where most DIY trusts fail.

  • Real estate deedNew deed conveying property to "[Trustee Name], as Trustee of the [Trust Name], dated [Date]". Record with the county.
  • Mortgage and lender notificationGarn-St Germain Act generally protects revocable trust transfers from due-on-sale; confirm with lender.
  • Homeowner's insuranceAdd the trust as additional insured. Verify coverage continuity after retitling.
  • Bank account retitlingOpen new accounts in trust name OR change titling on existing. Order new checks.
  • Brokerage account retitlingFull retitle vs. TOD-to-trust — broker-specific paperwork.
  • Beneficiary designationsUpdate IRA, 401k, life insurance, annuity, HSA, 529 to match the plan. These override the will/trust.
  • Business entityAssign membership/share interest to the trust per the operating agreement; update entity records.
  • VehiclesCheck state DMV process. Sometimes a beneficiary designation (TOD title) is simpler than retitling.
  • Personal property assignmentSign a general assignment of personal property to the trust — covers untitled assets.

Companion documents

A trust is one document in an estate plan. These others fill the gaps the trust doesn't cover.

  • Pour-over willCatches anything not funded into the trust and directs it there at death. Goes through probate.
  • Durable financial power of attorneyCovers assets outside the trust during incapacity (IRAs, employer benefits, Social Security).
  • Healthcare power of attorneyNames a healthcare agent. Often combined with HIPAA authorization.
  • Living will / advance directiveEnd-of-life treatment preferences. State-specific forms.
  • HIPAA releaseAllows specific people to receive medical information without becoming the healthcare agent.
  • Memorandum of personal propertyUpdateable list of who gets specific tangible items. Referenced by the trust.
  • Trustee letter of instructionNon-legal context: account passwords, advisor contacts, funeral wishes, family stories.
  • Beneficiary letterPersonal explanation of choices — reduces family conflict more than any legal clause.

Tax and benefit considerations

Funding choices have tax consequences. Run these by a CPA before signing, not after.

  • Step-up in basisInherited appreciated assets generally receive basis = FMV at death. Gifts during life don't.
  • State estate / inheritance taxIL, MA, OR, WA, MD, NJ + others have state-level estate or inheritance tax. Federal exemption is much higher.
  • Generation-skipping transfer (GST) taxApplies when wealth skips a generation. Specific allocations needed in drafting.
  • Retirement account SECURE Act rulesMost non-spouse beneficiaries must drain inherited IRAs within 10 years. Trust drafting must accommodate.
  • Capital gains on homeSection 121 $250k/$500k exclusion may be lost if title is changed incorrectly during life.
  • Medicaid planning windowMost Medicaid programs apply a 5-year look-back on gifts. Revocable trust assets count as yours; irrevocable may not.
  • Property tax reassessmentTransfers between trust and grantor are usually exempt; transfers to others can trigger reassessment.

Record-keeping and security

Where things are is as important as what they say. A perfect trust nobody can find at death is worthless.

  • Original trust document storageFireproof home safe or attorney's safe. Bank safe-deposit boxes can be frozen at death.
  • Copies for successor trusteeEach named successor should know where the original is and have access path.
  • Master document indexOne page listing every account, policy, deed, advisor — and where the records live.
  • Digital backupEncrypted PDF copies in cloud storage with shared emergency access.
  • Password manager with emergency accessBitwarden, 1Password, etc. — designate emergency contacts with delayed access.
  • Funeral and burial wishesNot in the trust (read too late). Separate document, given to family directly.

Review and handoff

Plan to revisit. Most estate plans are out of date within 3 years of signing.

  • Attorney engagementEstate planning attorney licensed in your state. Flat fee is common for revocable trust packages.
  • Attorney intake questionsBring asset inventory, beneficiary list, family-conflict notes, and prior estate documents.
  • CPA / tax professional reviewEspecially for business owners, blended families, real estate in multiple states.
  • Financial advisor coordinationBeneficiary designations and titling must match the trust plan.
  • Annual review dateSame week every year — birthday, anniversary, or tax-day adjacent.
  • Trigger-event reviewMarriage, divorce, birth, death, new state, large windfall, business sale, diagnosis.
  • Trustee training packetPrint the trustee guide, attach key contacts and locations, store with the original trust.
  • Document destruction planWhen a new trust supersedes the old, destroy old originals to prevent confusion.

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