Can You Set Up a Trust Without a Lawyer? Breakdown, Pros, Cons

Revocable living trusts are strategic estate planning and management tools. More flexible than a final will, trusts come into power upon creation and open up a world of possibilities.

The downside is that creating and managing a living trust is more complicated than writing a will. 

All the same, you can set up a trust without an attorney — plenty of online resources can help create functional, legally sound trusts.

Setting up a DIY trust can be much more affordable than using a professional legal service, even though it is likely to take more time. However, research and thread carefully as it opens up the possibility for errors and inaccuracies that can render the trust vulnerable to court disputes.

Proper wording and coverage of all legalities are essential in making a trust viable, but these skills don’t come naturally. Quite the opposite, they require a lot of knowledge and expertise.

So, the real question becomes whether you should set up a trust by yourself.

Read on to discover how to create a living trust and the advantages and disadvantages of the DIY approach.

What Is a Trust

Simply put, a living trust is a legal relationship between the grantor, the one who creates the trust, and the trustee who receives the right of ownership over specified assets.

The trustee holds the title for the beneficiaries the grantor has specified.

Also, to establish a living trust that is functional and legally binding, it must be funded. In other words, the ownership of the assets it governs must be lawfully transferred within the trust’s control.

Irrevocable vs Revocable Living Trust

The two main types of living trusts are revocable and irrevocable. As long as they are funded, both can control different assets like:

• Real estate
• Bank accounts
• Other property

A revocable trust provides greater flexibility as its conditions can be updated anytime. Major life events can be reflected in this form of living trust relatively easily.

Irrevocable trusts remain largely as they are set. There are certain mechanisms to update them, but they are costly and usually pass through a court of law.

How to Approach DIY Living Trusts

Nowadays, creating a revocable trust without a lawyer seems rather easy.

Numerous online resources provide advice, legal information, and even forms to help you with the drafting process. Some services can review your documents and provide feedback.

In a nutshell, these are the do-it-yourself options for a revocable trust: 

• Write the living trust yourself — Requires in-depth understanding of the local laws
• Online forms — Paid and free living trust forms¸ provide structure and a degree of guidance
• Online legal document services — More affordable than a lawyer, they can help with varying degrees of guidance, advice, and feedback

If you want to make a living trust without a lawyer, online legal services are probably the safest way. They aren’t free, but the cost is manageable, while the feedback and expertise can save you from many legal headaches in the future.

Here are the main advantages of DIY trust creation:

• Fast trust creation
• Affordability
• Flexibility
• Control

However, drafting a complex legal document without prior experience can be tricky. The DIY approach works best for simple trusts, and even then it can unravel rather quickly.

Online trust setup has a few major disadvantages:

• Potential for mistakes that render the trust useless
• Missing out on tax benefits from the trust
• Ambiguity that can lead to court involvement
• No real feedback as a lawyer can provide real-time guidance and ideas

Usually, complex estates are best served by estate lawyers who can advise on the best long and short-term arrangements.

Should You Consider Professional Legal Advice

When dealing with property management and asset distribution, legal advice from a professional can be invaluable.

Yes, lawyers cost money, but a simple consultation from a qualified solicitor can guarantee the viability of your trust. You don’t need an attorney to set up the trust, but having one going through your draft is an extra step that is highly recommended.

Indeed, most online document services have lawyers check and approve all the papers, so that’s certainly an option. A real-life meeting with a lawyer, however, can bring much-needed clarity and a direct explanation of convoluted regulations and requirements.

What’s more, if you have done your living trust draft by yourself, the consultation fee will likely be lower than having the lawyer write it from scratch.

In certain circumstances, working with a lawyer is a must:

• Numerous, varied assets
• You are a business owner who wants to transfer the ownership to the trust
• Complex inheritance distribution
• Complete lack of understanding of inheritance laws and asset management

Even if you fall in neither of these categories, consulting a professional is highly recommended.

Tools like ChatGPT can be helpful in drafting inheritance documents, but they lack the actual expertise and understanding of local laws. They are better suited for ideation rather than the creation of actual documents.

Setting up a Living Trust Doesn’t Have to Be Expensive

Creating a revocable living trust can be done without paying a cent. You can set up the trust without an attorney, online service, or paid templates, but it is probably not worth the risk.

Minor omissions and ambiguities can lead to significant legal challenges. 

Arguably, the best approach is to draft your living trust with a free template and then consult with a professional to ensure everything is sound and legally binding. Such consultations aren’t overly costly, but provide peace of mind and proper funding of the trust.