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Indiana Living Trust Form – Irrevocable & Revocable

The Indiana living trust is an arrangement that places a Grantor’s assets within an entity to be distributed to Beneficiaries upon the creator of the trust’s death. Any asset designated to the trust is to be managed by an individual chosen by the Grantor, known as the “Trustee”; the Grantor may nominate themselves as Trustee and retain full control over their property while alive (Revocable Trust only). When the Grantor dies, the Trustee must ensure that the Beneficiaries receive any property or assets to which they’re entitled. The benefit of this arrangement is that the Grantor’s assets are not subject to the probate process and will be distributed directly to the Beneficiaries after the Grantor dies.

LawsTitle 30, Article 4 (Trust Code)

Will (Last Will and Testament) – This document should be used to detail all property and arrangements not mentioned in the trust. All assets in a Will enter the probate court upon the death of the Grantor.

Types

Irrevocable Living Trust – The assets placed within an Irrevocable Trust are removed from the Grantor’s ownership. Consequently, the Grantor will not be responsible for any income or estate tax which may be generated. Note that the Grantor may not modify an Irrevocable Trust after it has been implemented.

Revocable Living Trust – This trust type permits the Grantor to act as Trustee and manage their property during their lifetime. Unlike an Irrevocable Trust, a Revocable Trust can be altered by the Grantor.

Individual Roles

The following four (4) roles are essential in a Living Trust:

Grantor (or “Settlor”) – Maker of the trust and original owner of all real estate and property.

Trustee – Responsible for managing the trust and ensuring that the Beneficiaries receive what they’re entitled to when the Grantor dies. If the Grantor files a Revocable Trust, he/she may choose to act as Trustee and manage the Trust during their lifetime.

Successor Trustee – If the Grantor is also the Trustee, the Successor Trustee must execute the Grantor’s trust after they die. Otherwise, the Successor Trustee will assume control of the Trust if the initial Trustee dies or becomes incapacitated.

Beneficiaries – Recipient(s) of the assets designated to the trust.

How to Make a Living Trust?

Create a living trust under Title 30, Article 4, Chapter 2 (Rules Governing the Creation of Trusts) by downloading one of the trust types and entering the information of the parties (Grantor, Trustee, and Beneficiary). There should also be a detailed account of the assets which are to be distributed to the Beneficiaries after the Grantor dies. Afterwards, have the Trustee acknowledge their acceptance of the appointment and sign in the presence of a Notary Public or two (2) disinterested witnesses (not required but recommended). After the form is complete, it should be kept in a safe and accessible place so that it may be modified if necessary (if a Revocable trust). If an Irrevocable trust, it should be secured and only evaluated after the death of the Grantor.

After the trust has been created, all applicable property must be transferred into the trust (see below).

Motor Vehicles – Complete an Indiana Bill of Sale to prove the transference of ownership. The vehicle must then be registered online or in person at an Indiana BMV within 45 days.

Real Estate – To place real estate in the trust, fill out an Indiana Deed and file it with Recorder’s Office in your country along with the Filing Fee.

Websites – The information on file with ICANN/ WHOIS must be modified to relay the change of ownership. To do this, contact your domain registrar (such as GoDaddy) and update your contact and administration details.

Do I Need a Living Trust in Indiana?

Indiana State Law (§ 29-1-8-1) mentions that a trust is not necessary for a person to avoid the probate process if they have fifty-thousand dollars ($50,000) or less in personal assets. Personal assets are calculated as the gross estate value minus any liens or encumbrances. If one has a small estate and chooses not to create a living trust, their assets will be spread across all applicable Heirs. With keeping that in mind, if the Grantor has specific individuals they would like to hand over their property to, a trust is still required to avoid probate and transfer possession of the asset. Otherwise, if the individual’s estate is estimated at less than the aforementioned threshold ($50,000), he or she does not have to create a trust and can rely on their Heirs coming to an agreement over the property after their death.

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