Your Guide to Making a Living Trust in Wyoming

Living Trust: What is it?

A living trust is a legal document that places ownership and control of property into a trust managed by a trustee for your benefit.

The document can help you and your family, including your surviving spouse, children, parents, and others, prepare for an uncertain future, avoid the hassle and costs of probate, and preserve your privacy.

A living trust is created during the trustor's lifetime and can be used to manage assets such as real estate, bank accounts, stocks, and bonds. It designates a trustee and provides explicit directions for the distribution of assets after the grantor's death.

Living trusts are of two types - revocable living trusts and irrevocable living trusts.

A revocable trust is an estate planning tool that offers the flexibility to be modified or terminated according to your preferences throughout your lifetime. Conversely, an irrevocable living trust is a permanent arrangement that cannot be altered once established.

It's best to consult an estate planning attorney to determine which type of trust is best for you.

Is it Necessary to Create a Living Trust in Wyoming?

You don't need to make a living trust if your estate is small and qualifies for the simplified probate process.

However, a living trust is better if your estate is large. Here's why -

Unlike property distributed through a Will, which can be held up in probate court for an extended period, possibly entailing hefty court expenses and legal fees, assets passed down through a trust can be swiftly allocated to beneficiaries with minimal attorney involvement.

Moreover, the identities of beneficiaries and the assets contained within the trust remain confidential, shielded from public scrutiny.

How Do I Make a Living Trust in Wyoming?

To make a living trust in Wyoming, follow these steps:

Step 1: Take Stock of Your Assets

List all your assets, including your house, car, jewelry, stocks, bonds, life insurance policies, etc.

This step lets you understand your holdings and identify assets that can go through probate. Including these assets in your living trust maximizes the benefits of this legal arrangement.

Step 2: Gathering the Necessary Paperwork

To "fund the trust" effectively, gather the relevant paperwork such as property titles, stock certificates, and bank account statements.

Step 3: Determine the Grantor(s)

Consider whether you will be the sole grantor of the trust or establish a shared trust. If you are married, or in a domestic partnership and own many assets jointly, it may be better to establish a shared trust.

But you can also have two individual trusts to accommodate such circumstances.

Step 4: Choose the Beneficiaries

Decide who will be the beneficiaries of your living trust. These individuals can include family members, friends, or even charitable organizations.

Take your time and carefully consider your choices; they will ultimately receive the trust property upon your passing.

Step 5: Appoint a Successor Trustee

The successor trustee plays a critical role in managing your assets and ensuring the fulfillment of your wishes if you become mentally incapacitated or after your death.

This person will handle debt payments, distribute your assets, and, if necessary, take charge of your affairs in case of incapacitation.

Selecting a successor trustee should involve implicitly choosing someone you trust and who can also be named a beneficiary in the trust. It is advisable to discuss your living trust plans with your chosen trustee to confirm their willingness and ability to assume this responsibility.

Step 6: If You Have Minor Children, Select a Property Manager

If you anticipate that a minor child will inherit assets through your living trust, it is a good idea to name a property manager.

This individual will oversee and protect the inherited property until the child grows up and reaches the specified age in the trust.

Step 7: Prepare the Trust Document

With all the preliminary decisions, it is time to draft the living trust document. Wyoming has specific legal statutes governing the composition of trust documents.

Thus, seeking guidance from an attorney experienced in estate planning or online legal service is better to ensure compliance with state laws.

Step 8: Sign and Notarize the Document

Upon completion of your trust document, it is imperative to affix your signature and your spouse's if the trust was created jointly in the presence of a notary public.

Step 9: Transferring Property to the Trust

The next step is to transfer your assets into the trust. The transferring process varies depending on the type of property involved.

In the case of real estate, you need to change the title, while intellectual property necessitates assigning ownership rights. Follow the specific procedures to ensure your assets are properly held within the trust.

Step 10: Store the document in a safe place

It is vital to secure a safe location for your trust and ensure that a reliable individual, such as the successor trustee, has authorized access.

Step 11: If You Make a Revocable Living Trust, Update It

Births, deaths, marriages, divorces, property transactions—these life events necessitate a thorough examination of your living trust to ensure its alignment with your current desires. Even in the absence of such events, reviewing the document regularly every few years is prudent.

Wyoming Living Trust FAQs