Trust creation checklist

Initial Steps

Determine the purpose of the trust

Select a trustee

Choose beneficiaries

Determine the assets to be placed in the trust

Choose a trust name

Decide on the type of trust (revocable, irrevocable, special needs, etc.)

Review any existing estate planning documents to ensure consistency with the new trust

Consider any potential tax implications of the trust

Research and understand state laws regarding trusts and how they may impact the trust creation process

Discuss the trust with family members or other relevant parties to ensure transparency and understanding of intentions

Legal Documentation

Draft a trust agreement

Have the trust agreement reviewed by an attorney

Sign the trust agreement

Create a trust document

Obtain a tax ID number for the trust

Execute a certificate of trust

Create a pour-over will to ensure all assets are properly transferred to the trust

Designate a trustee and successor trustee in the trust agreement

Create a trust funding plan to transfer assets into the trust

Record the trust agreement with the appropriate county recorder's office

Funding the Trust

Transfer assets into the trust

Update beneficiary designations on accounts

Update property titles to reflect trust ownership

Update insurance policies to name the trust as beneficiary

Transfer real estate deeds into the trust

Assign ownership of vehicles and other titled assets to the trust

Update investment accounts to be held in the name of the trust

Transfer business interests or ownership into the trust

Ensure all financial accounts are retitled in the name of the trust

Consult with financial advisor or estate planning attorney to determine best strategies for funding the trust

Administrative Tasks

Keep detailed records of trust transactions

File annual tax returns for the trust

Communicate with beneficiaries about trust activities

Review and update the trust regularly

Make distributions to beneficiaries as outlined in the trust agreement

Monitor trust investments and make adjustments as needed

Maintain insurance coverage for trust assets

Keep track of any trust expenses and reimbursements

Coordinate with financial institutions for trust account management

Provide annual financial statements to beneficiaries

Handle any disputes or conflicts among beneficiaries

Ensure compliance with any legal requirements for the trust

Compliance

Comply with all state and federal regulations regarding trusts

Keep up to date with changes in trust laws

Ensure the trust is being managed in the best interest of the beneficiaries

Seek legal counsel for any questions or concerns about trust management

Regularly review and update trust documents to ensure compliance with current laws and regulations

Maintain accurate records of all trust transactions and communications

Comply with any reporting requirements stipulated by the trust agreement or by law

Provide annual accountings and reports to beneficiaries as required

Monitor trustee activities to ensure they are acting in accordance with the trust terms and applicable laws

Review and Update

Regularly review the trust agreement to ensure it still aligns with your wishes

Update the trust as needed to reflect changes in your life circumstances

Communicate any changes to beneficiaries and trustees

Consider seeking professional advice for trust management and administration.

Review and update beneficiary designations for retirement accounts and life insurance policies to ensure they align with the trust

Review and update the investment strategy of the trust to ensure it continues to meet your financial goals

Consider updating the trustee succession plan in case the current trustee is no longer able to fulfill their duties

Review and update any provisions for charitable giving within the trust

Evaluate any tax implications of the trust and consider updating the trust to minimize tax liabilities