Creating a Living Trust: DYI Project?
I was thinking of creating a living trust on my own, using website guides and other online resources. I'm wondering if anyone has had experience doing that, and what are some of the pitfalls to avoid? How much time does it take? And, I guess, is it worth it in the end? Thanks!
Apr 17, 2024
Parent Replies
Our CPA recommended the Nolo Press DIY Living Trust book. I am working my way through it. When I got back to him with questions, e.g. is it true that the executor and ST should be rge same person? (Not necessarily.), some of the Nolo content was debatable,
That said, we previously tried two estate planning lawyers who charged us a lot of money and wasted a lot of time with unsatisfactory results.
Our DIY trust is still a work in progress. But I think we will ultimately have to write it ourselves regardless.
I really don't recommend creating a trust as a DYI project. You're leaving an inheritance to your children. This is not something you want to experiment with on your own, especially if you have no legal training. May I recommend a really good trust attorney? Last year, my husband and I really enjoyed working with Christina Chung. Her website is https://www.christinachunglaw.com. We found her to be really warm and personable -- we actually enjoyed the process, if you can believe it -- ha! I understand the allure of doing the trust yourself -- I enjoy DYI home improvements -- but this is really one you want a skilled attorney to walk you through. All my meetings with Christina were on Zoom, with the final signing in person, so it was really convenient and painless. And most of all, deeply assuring that my children will be okay when I pass away.
If it's the cost preventing you from working with an estate planning attorney, then I would recommend using an online service like www.trustandwill.com. This is really not an area that you should DIY because the ramifications of doing it wrong are massive.
Some legal documents lend themselves to doing it yourself: simple contracts, rental agreements, a basic will. But a living trust involves fairly complex laws, tax considerations, and asset transfers. My living trust was about 50 pages in length! You don't want to draft that document on your own. I strongly recommend you get yourself a good trust attorney. You don't want your assets tied up in probate court or your beneficiaries getting into a dispute. Good luck!
Just echoing other advice that this may not be an area where you want to DIY. You certainly can, but there are many inexpensive options that include things like notarization of signatures and filing the trust (and modifying the deed if you own property). We spent about $800 for a plug-and-play style living trust and will through a local firm a couple of years ago, and it was money very well spent. Much of it we could have done ourselves, but it was hugely helpful to have someone to ask when we encountered questions or simply didn't know what was typical, and to have gentle prompting to get everything completed. I'm sure we could have worked through the Nolo book (which we also have) to do it ourselves, but there would still have been costs to complete and file the work, and it was worth it to get it finished promptly and know it was done correctly. If your assets aren't complicated you certainly don't need to spend thousands on a lawyer to do it, but there's a sweet spot between that and DIY that was the right landing place for us. Several local firms offer living trust packages--we used Guideway near Lake Merritt in Oakland, and would recommend them.
I recommend Guideway, a company of paralegals, etc. I purchased their do-it-yourself Living Trust kit which helps lay everything out. I must confess I haven’t finished yet…My plan is to have an estate lawyer review it for holes or other issues. I figure doing 90% of the work first will really keep the legal cost down.
I used them initially to file my a deed with name change after my divorce and it was quick and easy and affordable for me. Good Luck!
We hired an attorney to create our trust. But for my mother, I used the Nolo Press book. Her situation was pretty straight forward so it wasn't too difficult. I think in the future we'd probably just do our own trust using Nolo or an online service. I think it boils down to how comfortable you are with this type of thing and if you want to put in the time.
I second the person who recommended the Nolo book. I have had good luck with those for quite a few things including understanding trusts which is worth reading up on even if you have a lawyer draft it in the end. They also are pretty good about pointing out when you really need to speak with a lawyer. And if you go with a lawyer, my two cents is avoid the high volume places that take workplace plans. I had a really bad experience with one of those. In retrospect just sticking with the Nolo book would have been better in every way - quality, cost, and time spent.
Oh man, my wife and I tried using Nolo Press to create our own trust. It was a disaster. And stressful, especially taking into account the tax implications. After several days, we gave up and hired and attorney. Let my example spare you hours of pain.
Perhaps, one of the reasons people feel like it's better to write their own living trust is because of a negative experience with an attorney. I completely understand. A lot of attorneys give you the bad feeling like they're rushing to finish up with you. But I had a wonderful experience with my trust attorney. She's whip smart but also incredibly kind and compassionate and patient. I can't recommend Christina Chung highly enough.