Updated January 25, 2024
The Mississippi living trust is a legal instrument that facilitates the distribution of an estate while bypassing the probate process normally necessitated by a standard Last Will and Testament. In addition to allowing the Beneficiaries of a deceased person’s estate to avoid probate, a living trust can also enable the person that creates the trust (the Grantor) to protect their assets and minimize their estate tax payments. If you are considering creating a living trust, you will need to familiarize yourself with the different available options and determine which will serve you best, or whether a standard Will is more suitable to your situation instead. We have provided information below on how to create a living trust in the State of Minnesota and what the different types are.
Laws – Title 91, Chapter 8 (Mississippi Uniform Trust Code)
Will (Last Will and Testament) – Any income or property that has not been signed over to the living trust should be included in a Last Will and Testament. This allows for all of your assets to be divided according to your wishes and without excessive litigation.
Individual Roles
The four (4) principal roles that are assigned within a living trust are:
Grantor – This is the person who makes the living trust.
Trustee – The person in control of the trust (usually the Grantor).
Successor Trustee – The person who will gain control of the trust once the Trustee/Grantor has perished or becomes incapacitated.
Beneficiaries – The person or people who are indicated within the living trust as being the recipients of the Grantor’s estate upon death/incapacitation.
Types
Irrevocable – An Irrevocable Living Trust allows for the person creating the trust to protect their estate from creditors and litigation. Their Beneficiaries will avoid probate and it can also minimize estate tax payments. Once created, this type of living trust cannot be changed or revoked.
Revocable – The only real benefit of a creating Revocable Living Trust instead of using a Will is that it allows for the Beneficiaries to avoid probate. In addition to limiting the litigation costs and time involved in the probate process, the details of a living trust are not made public (unlike a Last Will and Testament). A Revocable Living Trust can be altered, amended, or revoked at any time.
How to Make a Living Trust in Mississippi
As detailed in § 91-8-402, a living trust can only be created if the Grantor has the capacity and the intention to create a trust. The creation of the trust involves the drafting and signing of a document which details the assets included in the trust. In order to be valid, the Grantor must also specify the Trustee, Successor Trustee, and Beneficiary or Beneficiaries of the trust. The document should be signed in the presence of a Notary Public. Once the trust has been created, the Grantor will need to transfer the titles of ownership of all desired assets and property over to the trust.
Motor Vehicles – The vehicle title of any vehicles being placed in the living trust must be transferred to the trust with the Mississippi DMV.
Real Estate Deeds – A Mississippi Deed must be used to transfer ownership of real estate over to the trust and should be recorded in the county where the property is located.
Websites – To transfer ownership of any websites, change your website information with ICANN and/or WHOIS to reflect the new ownership via your domain provider.
Do I Need a Living Trust?
If your estate is valued at $50,000 or less, your Beneficiaries can avoid probate by using a Mississippi small estate affidavit. In accordance with law § 91-7-322, successors can use this document to avoid litigation after 30 days of the decedent’s death. Therefore, it would be less prudent to create a living trust if your estate will be less than $50,000. A living trust will be useful if you wish to avoid litigation or excessive taxation of a large estate. In certain circumstances, it can also make one eligible for Medicaid privileges.