Steps to Create a Trust

Your estate planning attorney will guide you through the various tasks associated with each step in creating a trust.

Select an Attorney - It is important to identify an attorney with experience in estate planning. Alaska USA Trust Company can provide a list of estate planning attorneys for your consideration.

Consult Your Attorney and Other Advisors - Your Attorney, in conjunction with any tax, insurance, and financial advisors that you may have, will help you determine what kind of trust meets your needs, and how it can best be structured.

Identify Assets - With your attorney, decide which assets to place in trust. Segregate assets that you hold individually from those held in joint tenancy. For purposes of probate avoidance, it is important that as many personal assets as possible be placed in trust.

Specify Lifetime Management Needs - Decide how you wish the assets to be managed during your lifetime. Consider the current income needs and growth objectives for both yourself and any other beneficiaries.

Specify Beneficiaries and Distribution - Identify the individuals and charitable concerns to whom the trust is to make distributions after your death.

Select a Trustee – Your trustee will be responsible for administering your assets during and beyond your lifetime. If you decide to name an individual, you should also name a successor trustee in the event of the original trustee's resignation, unsuitability, incapacity, or demise. Naming a professional fiduciary such as Alaska USA Trust Company as the primary or successor trustee assures continuity in the administration of your trust.

Draft Your Trust Agreement - Work with your attorney to draft a document that achieves your estate-planning objectives and reflects your personal intentions. Provide a copy to your trustee and successor trustee. A typical revocable living trust agreement would cover, among others, the following points.

  • Designation of the trustee
  • A statement of the investment powers granted to the trustee
  • Instructions for payment of income and principal during the grantor's lifetime and for distribution of assets thereafter
  • Instructions for the trustee to maintain records of the trust's income, disbursements, and principal transactions
  • Specification of any additional responsibilities assigned to the trustee
  • A statement of the terms under which the trust agreement may be amended or revoked
    (To be effective, any amendment or revocation should be placed in writing and filed with the trustee)
  • Designation of a successor trustee

Fund Your Trust - Change the legal title of your specified assets from your name to that of your trust. Your attorney will help ensure that all assets are properly re-registered. If applicable, remember to:

  • List all unregistered (bearer) securities on a separate schedule, and assign them to the trust.
  • Change the beneficiary of life insurance policies to the name of the trust.
  • Convey real estate to be held in trust.
  • Deliver all certificates and evidences of ownership to the trustee.
  • Attach a schedule of assets to the trust agreement.

If you would like additional information regarding estate planning, please call us. An Alaska USA Trust Company professional would be pleased to assist you.