Like a will, a trust ensures that a person's wishes are honored after death. A trust is very similar to a will, but with significant differences. A trust is basically transferring property like a will does, but it puts it aside in some way for the benefit of the person who will receive it later, usually at the person's death. There are also several kinds of trusts that all do specific things. A person could, in theory, write out their trust and have it notarized and in most cases that would be legally sufficient. Most people get a lawyer to make sure everything is as it should be. There are also online programs that will help you create a trust. These are usually programs that are used to make wills, and also have programming to create forms for various kinds of trusts. Quicken Plus, Legal Zoom, and Law Depot are the best three available. Ask the following questions when pursuing the best options for starting a trust online.
Also called a revocable trust, the person making the trust remains alive, and the beneficiary may or may not be getting the benefits. It is a trust that can be revoked or canceled at any time by the person who made the trust.
What is an irrevocable life insurance trust?
This removes your life insurance from your estate, and can be used by the recipient after your death. This is often used when something like a business is left to survivors. This would allow the ones inheriting the business to keep up with bills and expenses while everything else is being settled.
How is a trust better than a will?
A trust can be used to avoid probate taxes, while a will does not avoid taxes. A trust can also give the recipient protection from creditors, while a will cannot. A trust can also reduce estate taxes. Another advantage is that a trust can be used for a child's benefit or for the benefit of a person with disabilities. A trust also gives you more control over what happens to your assets, and you may dispose of property while you are still living.
How will an online trust save money?
Getting a lawyer to set up a trust can cost thousands. An online trust will be much less than $100. You can still pay a lawyer a small fee to have the trust looked over to make sure it is legal and meets all requirements.
What is a dynasty trust?
This is a generation-skipping trust, typically used to leave money for grandchildren. You may still leave money to your children in this case, but the grandchildren are the primary beneficiaries. This also avoids probate taxes, but if it is a significant amount, there can be a tax for this kind of trust.
Why is Quicken a good choice for a trust maker?
Quicken has a wide variety of forms for almost any financial transaction. All kinds of trust forms are available with their program. It is very easy to use with step-by-step instructions. While this is called a "will-maker" program, you may do a trust at no extra charge.
Why would Legal Zoom be a good option?
The instructions are very easy to follow as it uses an interview format to fill out the forms. You just answer the questions and the program fills out the form. The only downside is you have to pay extra for the trust forms. It has great support available by phone.
Why is Law Depot a good choice?
Law Depot is compatible with Mac computers. It has a lot of good tools and step by step instructions on how to fill out the forms. It is also primarily a will maker, but you may also do a trust with this program. It has a phone and a live chat support available.