Making a South Dakota Revocable Trust Correctly and Quickly!
You must create a perfect estate plan if you want your loved ones to have an easy time and spend less money during succession. You can write a will, but making a South Dakota revocable living trust is better as it protects your estate from the often frustrating probate process.
Keep reading to learn how to make a revocable living trust correctly and quickly, and anything in between.
What is a Revocable Living Trust?
A living trust is one of the most basic estate planning forms you can complete and sign to ensure your estate is managed and distributed as per your wishes. When you create this document, you put most of your assets, like real property and bank accounts, into the trust and provide instructions about how and when the assets will be distributed after your death.
You also name the successor trustee who manages and ensures the trust is distributed as per your wishes to the rightful beneficiaries.
Please note that a revocable living trust can be changed or canceled, making it the better option for persons who keep improving their estate plans.
Do You Need a Living Trust in South Dakota?
Creating a South Dakota revocable living trust is vital if you want your inheritors to have an easy time during succession. First, the document captures your wishes regarding your estate, which will be implemented after your death.
In addition, the signed estate planning form ensures assets named in the trust don't go through the probate process. This saves your family money and time they could have spent during the complicated court process.
However, South Dakota has adopted the Uniform Probate Code that streamlines probate processes. So the probate process may not be as complicated as in other states.
If you own a small estate ($50,000 or less), your loved ones can claim the inheritance using an affidavit. They can also request an 'informal probate,' If granted, they will get your assets more quickly even without a revocable living trust.
You can also get smart by transferring your home using a transfer-on-death deed to keep it out of the lengthy and expensive probate process.
Do You Still Need a Will even After Creating a Living Trust in South Dakota?
Yes, you may need a will, depending on your estate plan and the heirs involved. For example, if you have not included all your assets in the trust, you must create a will to explain who manages them and who gets what after your death.
Another situation requiring you to write a will is when you have minor children. You will need it to name their guardian.
Can a Revocable Living Trust Bring Down Estate Taxes in South Dakota?
A living trust may not lower your estate taxes. Therefore, if your estate qualifies for federal estate taxes (worth around $12 million or more), you or your family will pay the usual estate taxes.
However, there is an exception if you use a complicated trust like AB Trust. When you use such a trust, you will likely reduce or avoid federal estate taxes.
Steps for Making a Revocable Living Trust
Drafting a South Dakota revocable living trust isn't as complex as expected. Here is how to do it correctly and quickly.
Make a decision on which assets you will include in your trust
Come up with a list of heirs or beneficiaries
Choose a trusted person to be your successor trustee and let them know
Get a South Dakota living trust form and fill in the required details
Sign the completed form before a notary public
Transfer ownership of the assets to the trust
If you want to make a revocable living trust in South Dakota correctly and quickly, Forms.legal will help you. We offer all types of revocable living trust forms online that you only need to fill in, download and print when everything is ready.