Can You Set Up a Trust Without an Attorney?

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Key Insights

You can set up a trust without an attorney, but errors in structure or funding can undermine its purpose.
Louisiana’s civil law system includes rules, like forced heirship, that standard DIY templates often miss.
A trust must be funded correctly by retitling assets to avoid probate and ensure it works as intended.
Vague language or poor coordination with other estate documents can lead to costly disputes.
Chehardy Sherman Williams has helped clients across Southeast Louisiana create enforceable, customized trusts since 1989.

Creating a trust is one of the most effective ways to protect your assets, avoid probate, and provide for your loved ones on your terms. It’s a key part of estate planning that offers control over how and when your wealth is passed on.

As more people explore do-it-yourself legal tools, one question comes up often: Can you set up a trust without an attorney?

While it’s legally possible, the decision isn’t always that simple. Trusts are legal documents with long-term implications. When done incorrectly, they can create the very complications you intended to avoid.

Here’s what to know before taking the DIY route and why working with an experienced estate planning attorney may offer more security and peace of mind.

What Is a Trust?

A trust is a legal arrangement in which one party (the trustee) holds and manages assets for the benefit of another (the beneficiary), according to instructions set by the grantor (also called the settlor). Trusts can be customized to meet a wide range of financial and personal goals, including:

Avoiding the delays and public nature of probate
Managing distributions for minor or financially inexperienced beneficiaries
Providing for individuals with disabilities without disrupting government benefits
Reducing estate taxes in certain situations
Protecting assets from creditors or legal judgments

There are several types of trusts, but they generally fall into these categories:

Revocable trusts

Also known as living trusts, revocable trusts allow the grantor to retain control during their lifetime and make changes at any time. They are commonly used to avoid probate and maintain privacy.

Irrevocable trusts

Once created, irrevocable trusts typically cannot be altered or revoked. However, they offer stronger asset protection and may reduce estate tax liability.

Testamentary trusts

Created through a will and activated upon death, testamentary trusts can provide long-term control over assets but must go through probate before taking effect.

Special needs trusts

These trusts are specifically designed to provide for individuals with disabilities without affecting eligibility for public assistance like Medicaid or SSI.

Each type has specific legal and tax implications, underscoring the value of working with a professional who understands how to structure them properly.

What’s Involved in a DIY Trust?

If you choose to set up a trust without an attorney, you’ll likely use an online platform or downloadable template. These tools typically guide you through:

Choosing the type of trust
Naming yourself as grantor and trustee (or appointing another trustee)
Designating beneficiaries
Drafting distribution terms
Signing and notarizing the document
Funding the trust by re-titling assets (e.g., real estate, bank accounts, investment portfolios)

However, most DIY tools do not explain the nuances of trust funding, the process of legally transferring ownership of your assets into the trust. Without this critical step, your trust will not function as intended.

Many people mistakenly believe that the trust becomes effective upon signing, when in fact it only becomes operational once it owns the assets.

Why You Should Work With an Estate Planning Attorney

1. Louisiana’s civil law system is unique

Louisiana operates under a civil law tradition, derived from the Napoleonic Code. Terms like usufruct, forced heirship, and community property have distinct meanings here and don’t always align with legal definitions used in other states. A trust template written with common law states in mind may not be valid or enforceable in Louisiana.

For example, under Louisiana law, forced heirship may require a portion of your estate to be reserved for certain children, even if you name different beneficiaries in your trust. An estate planning attorney can help you understand and plan around these obligations.

2. Trusts must be funded correctly

Even a perfectly written trust will fail if assets aren’t transferred into it. That means changing the title on your house, updating the ownership on financial accounts, and possibly changing beneficiary designations on insurance policies or retirement plans. Each asset class has different rules, and the funding process varies based on the institution.

Attorneys help ensure that these transfers happen efficiently and without triggering unintended tax consequences.

3. Trust language must be precise

The success of your trust depends on how clearly and accurately it expresses your intent. Ambiguous clauses, missing contingencies, or contradictory instructions can lead to court challenges or confusion among your beneficiaries. An attorney ensures that the trust includes:

Spendthrift clauses for creditor protection
Contingency plans for successor trustees or deceased beneficiaries
Clear guidelines for discretionary distributions

4. Fiduciary duties must be understood

Trustees have a legal duty, called a fiduciary duty, to act in the best interests of the beneficiaries. If you name a family member as trustee, they may not fully understand their legal obligations regarding recordkeeping, tax filings, or impartial decision-making. An attorney can help educate trustees and, when appropriate, recommend a professional trustee.

5. Integrated planning is essential

Your trust should work in harmony with your will, durable power of attorney, healthcare proxy, and any advance directives. If these documents conflict or are incomplete, your estate plan may be vulnerable to litigation or probate challenges. A lawyer ensures everything aligns.

Real-World Risks of DIY Trusts

While DIY trusts may seem appealing due to lower upfront costs, the long-term risks are real. Common issues include:

Real estate not properly deeded to the trust, resulting in probate delays
Bank accounts that still list the individual instead of the trust
Beneficiaries receiving lump sums without restrictions, leading to financial mismanagement
Outdated or incorrect legal terms that render the trust unenforceable
Missing language about successor trustees or incapacitation of the grantor

These mistakes can lead to legal battles, tax penalties, or invalidation of the trust altogether.

FAQs: Setting Up a Trust Without an Attorney

1. Is it legal to set up a trust without a lawyer?

Yes, you can legally create a trust on your own. However, it’s not recommended unless you have a very simple estate and a strong understanding of state laws, especially in Louisiana.

2. What happens if I forget to fund the trust?

If you don’t transfer your assets into the trust, they won’t be governed by it. These assets may have to go through probate, defeating one of the main purposes of creating a trust.

3. Do I need a trust if I already have a will?

Wills go through probate, while trusts allow for private and more immediate asset distribution. Many people have both to ensure full coverage of their estate planning needs.

4. How does a trust impact taxes?

Some trusts have tax advantages, while others, especially irrevocable ones, may have complex filing requirements. An attorney can help ensure tax efficiency and compliance with state and federal regulations.

5. Can I name myself as trustee?

Yes, you can serve as the trustee of your own revocable living trust. However, you must still appoint a successor trustee to manage the trust upon your incapacity or death.

Get Estate Planning Right the First Time

A trust must be properly written, legally compliant, and correctly funded to achieve your goals. In Louisiana, where civil law governs estates, that means working with attorneys who understand the state’s unique requirements.

At Chehardy Sherman Williams, we’ve served Southeast Louisiana since 1989, helping clients create customized trusts, retitle assets, navigate forced heirship, and integrate estate documents for full legal protection. With locations in New Orleans, Metairie, and Hammond, we make it easy to access experienced estate planning counsel, wherever you are.Schedule a consultation today to work with a team that brings decades of experience to every aspect of your estate plan.