Key Points to Note About North Dakota Revocable Living Trust
A revocable living trust is an estate-planning document that allows you to manage your property and assets. In North Dakota, like in other states, specific requirements govern the creation and implementation of living trusts. This guide will walk you through these requirements.
Definition of a Revocable Living Trust
A revocable living trust is a legal document that allows you to transfer your assets into a trust while maintaining control over them during your lifetime. It also allows you to designate someone else, such as a family member or trusted friend, to manage the assets if you become incapacitated or otherwise unable to manage them yourself.
Once the trust is set up, it can be revoked, amended, or terminated at any time with your written consent.
Why You Need a Revocable Living Trust in North Dakota?
You should consider making a revocable living trust in North Dakota for several reasons. For instance, it can help you avoid probate, protect your privacy and plan your estate even better.
Having your beneficiaries go through probate to inherit your properties is usually a long and expensive process that can be frustrating. But a revocable living trust can come through to save the day.
And in addition to the fact that North Dakota has fully adopted the Uniform Probate Code, the probate process is a little simpler than in other states. Moreover, North Dakota provides simplified probate procedures for small estates worth $50,000 or less.
In addition, North Dakota offers a fast-track probate process called a "summary administrative procedure" for estates that meet specific requirements. If the value of your estate is within certain debts and allowances set out in the North Dakota Century Code, your estate can use this procedure to expedite the probate process.
Having a revocable living trust is an excellent idea if your estate doesn't qualify for any of these.
Revocable Living Trust Vs. a Will
So, a lot is usually at stake when weighing down between a revocable living trust vs. a will. It is common for people to ask if they'll still need a will after creating a revocable living trust. And the simplest answer is even if you make a revocable living trust in North Dakota, it's still essential to have an updated will.
This is because some assets may not be eligible for transfer into a living trust due to their nature (e.g., life insurance policies).
Also, a will serves as backup documentation, ensuring all your wishes are fulfilled after death. This is even critical if there are issues with transferring certain types of assets into your revocable living trust.
A will is also the perfect tool to use when designating guardianship to minors, something a revocable living trust cannot do.
Can a Revocable Living Trust Reduce Estate Tax in North Dakota?
A revocable living trust in North Dakota cannot eliminate estate taxes. However, they can help minimize them by providing tax deductions on certain types of assets (e.g., real estate). For example, if an individual has multiple properties held within the trust and lives in one for ten years before passing away without selling, that property would be exempt from federal tax.
Making a Revocable Living Trust in North Dakota
If you want to create a living trust in North Dakota, keep the following in mind.
You must decide whether you want to create an individual or shared trust.
You must decide what property to transfer to the trust, including real estate, investments, and personal property.
You should choose someone to be the successor trustee who will manage the trust if you cannot do so.
You should decide who will receive the property held in the trust upon your death or incapacity.
Draft the agreement yourself or seek expert assistance.
You need to sign the trust document before a notary public
If you transfer any property to the trust with a title document, such as real estate or a car, you must change the title to reflect that the trust owns the property.
Unlike in the past, creating a revocable living trust in North Dakota is straightforward today. But it only gets easier with the assistance of Forms.Legal. We offer a free North Dakota revocable living trust form PDF that you can fill in online, download and print as it suits you. This is a hassle-free option that can save you from the stress of having to hire an attorney.