Revocable Living Trust requirements in Delaware
- You must be at least 18 years old and of sound mind.
- You need a written trust document that clearly names you as the grantor and trustee.
- You must name a successor trustee to manage the trust if you become incapacitated or die.
- You must transfer assets into the trust (fund the trust) to make it effective.
- In Delaware, the trust document must be signed by you (the grantor) and notarized. Witnesses are not required but are recommended to avoid challenges.
- While not required, registering the trust with the Delaware courts is necessary only if you are a trustee of a trust with a Delaware situs; otherwise, registration is not mandatory.
Talk to a Delaware estate planning attorney today to see if a revocable living trust fits your situation.
Create your revocable living trustHow to create a Revocable Living Trust in Delaware, step by step
- List your assets and decide which ones to transfer (real estate, bank accounts, investments, personal property).
- Choose a successor trustee – a trusted person or institution – to take over if you can't act.
- Draft the trust document (or use a reliable living trust template) that meets Delaware law. Include your distribution wishes and provisions for incapacity.
- Sign the trust document in the presence of a notary public. While Delaware does not require witnesses, notarization is essential.
- Fund the trust by retitling assets. Real estate requires a new deed recorded in the county where the property is located.
- Update your beneficiary designations on life insurance and retirement accounts if the trust should receive them, but consult a professional first to avoid tax issues.
Cost considerations
The cost to create a revocable living trust in Delaware varies. An attorney typically charges $1,500 to $3,000 or more. Online services or templates may cost $100 to $500, but you'll need to ensure they comply with state law. Factor in potential fees for notarization, recording real estate deeds, and transferring other assets.
Before You Begin: DE Living Trust Checklist
Creating a revocable living trust in Delaware involves key steps and documents. Use this checklist to prepare and avoid common pitfalls.
- Decide on your trust's name and choose a successor trustee who will manage assets if you become incapacitated or pass away.
- Gather a comprehensive list of assets you plan to fund the trust with, including real estate, bank accounts, investments, and personal property.
- Obtain and complete a Delaware living trust template or hire an attorney to draft a tailored document that complies with Delaware law.
- Have the trust document notarized (not required by Delaware law for validity, but recommended for real estate transfers) and keep it in a safe place.
- Prepare to transfer ownership of assets into the trust by retitling accounts and changing beneficiary designations—this is essential to avoid probate.
- Remember that you must sign the trust and fund it; a notarized signature is often needed for real estate deeds, which must be recorded with the Delaware Recorder of Deeds in the county where the property is located.
Common questions
What is the difference between a revocable living trust and a will in Delaware?
A will goes through probate, a court process that can be time-consuming and public. A revocable living trust avoids probate, gives you more privacy, and allows you to manage assets if you become incapacitated. Also, a will only takes effect at death, while a trust works during your lifetime.
Do I need to notarize my living trust in Delaware?
Yes, for the trust to be valid, the grantor's signature must be notarized. Delaware doesn't require witnesses, but a notary seals the document to prevent fraud. Make sure to sign in the presence of a notary.
Can I use a living trust template in Delaware?
You can use a template to save money, but it must comply with Delaware law. Templates may miss state-specific requirements, and mistakes can cause problems later. If you have a large estate or complex needs, hire an attorney to review or draft it.
How do I fund my revocable living trust in Delaware?
Funding means transferring ownership of your assets to the trust. For real estate, you record a new deed. For bank accounts and investments, you change the account name to the trust. Personal property can be listed in a schedule. Not funding the trust defeats its purpose.