Bare trusts, also called naked trusts or simple trusts, limit the responsibilities of the trustee under the terms of the contract. Trusts transfer your property or assets into the name of the trustee, who you designate, and the trust. You no longer control the assets, but your property and beneficiaries can avoid probate and stiff taxes. In a bare trust, the trustee only has to transfer the assets to the beneficiaries and does not have to manage your assets or property in any other way.
- Skill level:
- Moderately Easy
Contact a lawyer. Trust laws may vary depending on where you live and getting legal help ensures that you will not have an invalid trust after you die.
Write down each piece of property or asset that you'd like to put in trust. Detail who the property or assets should be given to after your death. These people are your beneficiaries.
Designate a trustee. This is the person who will have legal ownership of your assets and property until your death, when it transfers to your beneficiaries.
Write that the trustee has no responsibility except to transfer the items in trust to their designated beneficiaries. This ensures that he will not be expected to do property management, investing, or any other duties.
Take the written document to a notary and sign it in front of them. The trustee and two witnesses should also sign. Have the notary sign it, then give copies to your trustee, your lawyer, and yourself.
Transfer any property that will be held under the trust into the names of both the trustee and the trust. For example, the new owners might be listed as trustee Alicia Morris and the Taylor Family Trust.
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