Most people want to leave as much of their money to their children or other family as possible—and also want to avoid a big chunk of that money going to probate lawyers. That's where living trusts come in—they can help in avoiding probate and probate fees.

A basic living trust allows property to avoid probate and to quickly and efficiently pass to the beneficiaries you name, without the hassles and expense of probate court proceedings. That means more of the property you leave behind goes to the people you want to inherit it. It usually also means that your loved ones receive the property faster, since probate can take a long time.

A married couple can use one basic living trust to handle both co-owned property and separate property.

How to Make a Living Trust

To create a basic living trust, you make a document called a declaration of trust, which is similar to a will. You name yourself as trustee—the person in charge of the trust property. If you and your spouse create a trust together, you will be co-trustees.

Then you transfer some or all of your property to your trust. You do this by taking title to the property in your capacity as trustee. For example, you might sign a deed transferring your house from yourself as an individual to yourself as "trustee of the Jane Smith Revocable Living Trust dated July 12, 2020." Because you're the trustee, you don't give up any control over the property you put in trust.

In the declaration of trust document, you name the people or organizations you want to inherit trust property after your death. You can change those choices if you wish; you can also revoke the trust at any time.

When you make a living trust, you should also make a back-up will. Doing so will ensure that any property not transferred to the trust will go to the people or organizations you want to receive it. If you don't make a will, any property not included in your trust will be distributed according to the intestacy laws of your state—usually to the nearest relatives.

You can make a valid living trust online, quickly and easily, with Nolo's Quicken Willmaker & Trust.

How the Living Trust Works After Your Death

When you die, the person you named in the trust document to take over—called the successor trustee—transfers ownership of trust property to the people you want to get it. In most cases, the successor trustee can handle the whole thing in a few weeks with some simple paperwork. No probate court proceedings are required.

Do You Need a Lawyer to Create a Trust?

Making a living trust takes about the same amount of time and is only a little more complicated than making a will. If your circumstances aren't complicated and you are willing to invest a few hours of your time using an estate planning book or software, you can create a valid, effective trust document. For more information, see Making a Living Trust: Are Lawyers Optional?

Next Steps

To create your own living trust, use one of Nolo's living trust products:

• Make Your Own Living Trust, by Denis Clifford
• Quicken Willmaker & Trust (available both online and as desktop software)

Both of these products give you everything you need to make your own living trust, with plenty of help and legal information along the way.