Create a Living Trust in Washington, D.C.

A Washington, D.C., living trust holds your assets in trust during your life, but you continue to use and control them. After you die, the trust assets are distributed to your chosen beneficiaries. A revocable living trust (also called an inter vivos trust) offers a variety of estate planning benefits.

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create a living trust in washington dc

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Updated on: February 6, 2024
Read time: 4 min

A Washington, D.C., living trust holds your assets in trust during your life, but you continue to use and control them. After you die, the trust assets are distributed to your chosen beneficiaries. A revocable living trust (also called an inter vivos trust) offers a variety of estate planning benefits.

Living trusts in Washington, D.C.

A living trust in Washington, D.C. is set up when the grantor places assets in the trust. As the grantor, you choose what assets you would like to transfer, but your trust will be most effective when you place as many assets as possible into its ownership. There are some accounts that cannot be transferred to a trust, such as retirement accounts and life insurance. Your trust needs a trustee who is responsible for managing the trust assets for your benefit during your life. Any adult can be a trustee, but most people simply name themselves trustee to obtain the most control. You will need a successor trustee who can take over the trust management after your death. The successor also has the responsibility of distributing the trust assets to your beneficiaries in accordance with the terms you establish in the trust. A revocable trust is flexible—you can change it or eliminate it at any time while you are alive. An irrevocable living trust cannot be changed at all.

One of the most popular reasons to choose a living trust Washington, D.C., is because assets in the trust do not pass through probate upon your death. They can be immediately distributed to your beneficiaries if you wish. A will must go through probate, a court process that examines and approves a will before it can be put into effect. Assets in a will cannot be transferred until probate concludes. Probate may take months and involves the expenses of an attorney, executor, and court fees. The District of Columbia does not use the Uniform Probate Code, so its procedures are not streamlined. Your trust allows you to avoid probate in other states where you own property, as long as you transfer those assets into the trust.

If you believe your estate will be worth $40,000 or less upon your death, it qualifies for a small estate proceeding in Washington, D.C. This process is faster and less costly than regular probate and is also less expensive than setting up a trust.

Do I need a living trust in Washington, D.C.?

Creating a living trust in Washington, D.C., allows you to make careful plans for your future. The trust can offer you personal protections as well. Your revocable living trust protects you should you become mentally incapacitated. All of your assets are already controlled, owned, and managed by the trust and a conservatorship proceeding is likely unnecessary. While a durable power of attorney can be rejected, a trust cannot be. Your financial life is protected by the trust.

Living trusts offer a curtain of privacy for your affairs that is not available with other estate planning options. If you use a will, that will becomes public record when it is probated. A trust, in contrast, does not become public and the names of your beneficiaries, your assets, and the terms of your trust remain private. The trust is also much more difficult to contest than a will, providing certainty that your wishes will be carried out.

Another benefit of a living trust is the control it offers while you are alive and also after you die. During your lifetime your assets are technically owned by the trust, but since you control the trust, you have control of the assets. Your daily life remains the same. After you die you still maintain control over your assets because they are controlled by your trust. You can specify exactly when the assets should be distributed to your beneficiaries. Some people choose specific beneficiary birthdays to ensure the heirs will be mature enough. A will does not provide this option and passes assets once probate is finished.

Living trusts and estate taxes in Washington, D.C.

A living trust does not help you avoid estate taxes. Washington, D.C. applies estate tax to estates worth more than $1 million, but in 2016 this will go up to $2 million. Federal estate tax applies to estate valued at over $5 million. You can form a special kind of trust called a marital trust (sometimes referred to as a QTIP or AB trust) that avoids estate tax by passing assets directly from the deceased to a surviving spouse. Living trusts do not shield assets from Medicaid or creditors.

How to create a living trust in Washington, D.C.

If you would like to create a living trust in Washington, D.C., sign your written trust document before a notary public. To put the trust into effect, you must transfer ownership of your asset into it. A living trust offers control and flexibility that may suit your needs. Establishing a trust may offer you peace of mind.

Protect your estate by creating a Washington, D.C. living trust with LegalZoom. LegalZoom living trusts include a pour-over will, transfer deeds, and a document organizer.

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This article is for informational purposes. This content is not legal advice, it is the expression of the author and has not been evaluated by LegalZoom for accuracy or changes in the law.

48 days ago
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Grateful to Patti Green

Patti Green helped me so much to finish my order. She was very patient and pleasant with me and guided me so well with my living trust. She made it clear and explained things that I could understand to finish this. She is an asset to your company and I would recommend her with excellence

CU
50 days ago
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I had no Idea what to do to update my…

I had no Idea what to do to update my Living Trust. They answered all my questions and they also helped me get info I did not know I needed.

Bryan Q
56 days ago
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Living Trust Premium

Our Representative, Stormy was fantastic! She stayed with us through the whole process. She was very helpful and thorough.

sremeikis
64 days ago
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I spoke to the representative today about a Trust...

I spoke to the representative today regarding a question about an existing Living Trust. She was very helpful - told me exactly what I needed to know and how to accomplish it. As a representative in the Financial field I guide clients all the time on where to get documents done right - and its always LegalZoom - easy and effecient!

Gareth
66 days ago
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LegalZoom

I was impressed by the user-friendly interface and the outstanding support I received while creating a Revocable Living Trust. The ability to connect with support representatives in real time to address my questions was incredibly valuable. For those looking to establish a straightforward trust, I can highly recommend LegalZoom.

TDM
72 days ago
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Rida has been very helpful with respect…

Rida has been very helpful with respect o guiding me through the process of properly revising the Living trust for my elderly parents. His patience has been exemplary.

Frantz Michel
80 days ago
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Elizabeth Tisdale

Elizabeth Tisdale, knowledgeable,been having problems with the forms in my living trust,for the past two weeks and had to pay every time, Elizabeth was patient with me and explained every detail until it was corrected,she get my 5 stars

MARIA CORONA
80 days ago
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Taking the Initiative

Taking the initiative to do the info. research on our living Trust...set up back in 2016..Made the call an efficient, as well as a pleasant experience. Very thorough and friendly. Set up our atty consultation Thanks for great service!

Vicki Switzer
87 days ago
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Carmen was so patient with me

Carmen was so patient with me! Thank you for all your direction and guidance with my living Trust! Great job!

Tina Garcia
90 days ago
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Tammy was wonderful and very…

Tammy was wonderful and very knowledgeable. It's because of her that I am going to open a living trust with legal zoom. She was great. Thank You

Erin
98 days ago
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Pleasant Experience

Patience and weel given explanation about the process of how a "Living Trust" & "Deed" works after transitioning and guidance on how to contact an attorney whenever I need legal advice.

Sharron Martin
98 days ago
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Excellent LegalZoom Attorney

The LegalZoom attorney was extremely helpful in the "walk thru" assistance as I prepared the Living Trust document. The service was excellent.

customer
107 days ago
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Happy with my initial contact with Legal Zoom

Rebecca fully answered my questions about creating a living trust. She is friendly and professional, and with my mind at ease, I am looking forward to starting this process with Legal Zoom. I am confident that this will be the best route for me to take to make things a lot easier for my family when I'm gone. (And, easy for me!) I plan to be in touch in the next several weeks. Thanks, Rebecca!

Carol
125 days ago
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Michelle very professionally guided me…

Michelle very professionally guided me with her knowledge and amazing patience through the entire process of setting up my Living Trust. I am so relieved and grateful for her help. I have used LegalZoom before and you are my go to for legal advice. Thank you again Michelle.

Paula Bateman
133 days ago
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Quality Staff

I needed to revise my entire living trust and had put it off for years. Your staff member Eden walked me through the process with such patience and concern. Had I known it would be so easy, I would have never put it off this long. A testament to you quality staff.

Ady Filipescu
142 days ago
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Really great job in guiding me to…

Really great job in guiding me to finish my living trust .

Ronnie Ball
148 days ago
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5 Stars

5 Stars – Outstanding Customer Service from Tammy at LegalZoom I had the pleasure of working with Tammy from LegalZoom regarding my living trust documents, and I couldn't be more impressed. She was professional, patient, and incredibly knowledgeable. Tammy took the time to walk me through every step, answered all my questions clearly, and made a complex process feel simple and stress-free. Her attention to detail and genuine care made all the difference. LegalZoom is lucky to have someone like her on their team. Thank you, Tammy!

Cn
148 days ago
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Ease and help of making changes to my…

Ease and help of making changes to my living trust. LegalZoom rep walked me through the process without any difficulties. Really like working with LegalZoom.

Gregory Bechtol
155 days ago
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Enjoyed working with Kevin to finalize…

Enjoyed working with Kevin to finalize our Living Trust language. His knowledge on this product certainly increases our confidence in the viability of the final document.

JOHN in CALIFORNIA
Rated4.6out of 5 based on23,703+ reviewson

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