The services of a notary date back to the late 1400s. Those first few hundred years were full of learning curves and question marks. Fortunately, in 1957 The National Notary Association was founded to help turn those question marks into periods. In this article, we are going to teach you everything you need to know about The National Notary Association.

What is a Notary?

We cannot properly discuss The National Notary Association without first knowing what a notary is. If you are unfamiliar with the term, a notary is an official representative of the secretary of state. The services of a notary, while simple, are incredibly important in actively preventing fraud.

Specifically, a notary acts as an unbias witness to the signing of documents of great importance. A notary confirms the identity of the signers, as well as their willingness to sign the document in question. Furthermore, notaries will ensure that each signing party fully understands the document in which they are signing. However, a notary is not to be confused with an attorney. Notaries, unlike attorneys, are not allowed to give legal advice pertaining to the document that they are notarizing.

What is the National Notary Association?

The National Notary Association, or “NNA”, was founded in the late 1950s as America’s premier resource for notaries.  Prior to the forming of the NNA, there were no clear guidelines for notaries across the country. Considering notary laws vary from state to state, the forming of The National Notary Association was vital in helping notaries to learn and practice the unique laws of their state. Better yet, the NNA provides the training and tools essential to a successful, fraud-free notary practice. According to the website, www.nationalnotary.org, the NNA strives to achieve five essential goals:

1. Comply with state-specific best practices and notary laws
2. Avoid liability at the expense of both the notary and the public they serve
3. Limit company and signer risk in all notarial acts
4. Achieve optimal professional excellence
5. Expand income and career opportunities to current and aspiring notaries

The National Notary Association is America’s largest official resource for all things related to becoming and being, a certified notary public.

The National Notary Association and Notary Law

Furthermore, since the founding of the NNA over fifty years ago, they have also played an important role in continually updating relevant notary laws. In fact, state officials have historically sought out the aid of the NNA to modernize their state notary laws.

In 1973, The National Notary Association worked closely with Yale Law School to publics the Uniform Notary Act. The NNA evolved with the times and updated the UNA in 1984, 2002, and finally in 2010 changing it to the Model Notary Act. Currently, over 40 U.S. states have personally enacted pieces of the MNA into their own laws.

Furthermore, in 1998 the NNA published the Notary Public Code of Professional Responsibility. To this day, this literature is nationally recognized as the premier ethical code for notaries everywhere.

Model Notary Act

An esteemed panel of law professors, secretaries of state, mortgage banking professionals, technology experts, and government officials worked together to draft what we now refer to as the Model Notary Act (MNA). As previously mentioned, the MNA was originally called the Uniform Notary Act in its first draft in 1973. Since then, the MNA has evolved with the times to better inform state notary practices.

Should you feel inspired to read the full 162-page document, the NNA provides the full Model Notary Act document online.

Notary Public Code of Professional Responsibility

A previously stated, the NNA published the Notary Public Code of Professional Responsibility in the late 1990s. For over twenty years, this document has been the cornerstone of notary ethics. The responsibilities of a notary are high and require integrity and strong courage of convictions. The Code serves the following functions:

• Fostering Confidence – Adhering to the Code inspires confidence that a notary is practicing and upholding the principles and ethics of the Notary office, and the secretary of state
• Cultivating Respect – When notaries follow the Code, they encourage and inspire respect on a national, as well as an international, level
• Inspiring Postive Change – As the MNA illustrates, it is paramount that the notary laws change with the times. The Code helps ground these inevitable changes with a vital moral imperative
• Reducing Fraud – When notaries actively strive to follow the Code, it vastly reduces the risk of fraud. Therefore, eliminating time-staking and expensive litigation that comes with fraudulent notarizations
• Educating Non-Notaries – The Code is a useful tool in explaining the role, and importance, of a notary

You can read the Notary Public Code of Professional Responsibility in full online, courtesy of none other than The National Notary Association.

Notary Event of the Year

For over forty years the NNA has hosted the “Notary Event of the Year”. True to its name, this annual conference is the premier event for notaries from all over the country to come together. Held in a different city every year, this conference is designed to provide unparalleled education and networking opportunity for notaries everywhere.

Furthermore, it is at the Notary Event of the Year that the prestigious Notary of the Year award is given. The Notary of the Year award is an annual award given to an exemplary notary who:

• Is a beacon of professional and ethical notary conduct
• Actively engages in their community
• Mentors fellow or aspiring notaries
• Speaks publically to positively promote the office of the notary
• Forges the path for innovation and advancement in the notary world
• Donates notary services to those who struggle to afford it
• Engages actively in changing notary legislation with the times

Currently, the next event will take place in Scottsdale, Arizona in June of 2020. Keep an eye out for event updates about the Notary Event of the Year on the NNA website.

How to Become a Notary

The NNA is a vast pool of knowledge for established notaries all over America. Better yet, The National Notary Association is a pivotal tool for those looking to become a notary. The services of a notary are in constant demand. Becoming a notary is a relatively quick and easy process for those looking for an additional source of income. Rules and requirements for aspiring notaries vary greatly from state to state. Fortunately, the NNA is the go-to resource for navigating the specific needs of your state. In general, there are a few universal steps to becoming a notary nationwide. Read on to find out what they are!

Steps to Become a Notary

Nationwide, the procedure to become a notary is as follows:

1. Meet your state-specific qualifications
2. Complete and submit a notary application
3. Pay the application fee
4. Complete state-specific notary training*
5. Take, and pass, a state-mandated exam*
6. Provide fingerprints and pass a background check*
7. Receive your notary commission certificate from your state
8. Procure a surety bond*
9. File your commission certificate (and surety bond*) with your local secretary of state office
10. Purchase the necessary notary supplies

Fields marked with a * vary depending on your state of commission. Below we are going to dive deeper into each of the above steps.

1. Do I Qualify to Become a Notary?

First and foremost, in order to become a practicing notary, you must meet a few qualifications. Generally speaking, there are three main qualifications:

1. You must be over the age of 18
2. Notary applicant must hold no criminal record
3. You must be a legal resident of the state in which you are applying for a notary commission

The above list is true of all states. However, each individual state has the right to dictate additional requirements. For example, the state of New York requires that you hold basic proof of primary education (i.e. a high school diploma or G.E.D.).

2. Submitting a Notary Application

Every state will have a unique application to become a notary. You can usually find the appropriate application online. First, find out who regulates notaries in your state. Overarchingly, the Secretary of State’s office is the regulating authority for notaries. However, some states use the county clerk’s office or another local governing body. Whoever regulates notaries in your state should provide state-specific instructions, as well as an application to fill out.

3. Notary Application Fees

While becoming a notary is a relatively inexpensive process, it does involve a few vital upfront costs. One of these costs is the fee you must pay to submit your application. Some states call this an “application fee” or a “filing fee”. Naturally, this amount varies depending on your state in which you are applying. Texas, for example, only charges a $21 filing fee. New York, on the other hand, charges a $60 application fee.

4. Notary Training

If you are looking to acquire a marketable skill, with very little initial time or fiscal commitment, becoming a notary may be perfect for you. Most notary training courses cost less than $200 and take between 3-6 hours to complete. Not a bad deal compared to years of costly college courses.

Furthermore, only ten states even require mandatory training in order to become a notary. However, the other forty states highly encourage you to voluntarily complete a basic notary training course. Considering the legal weight involved with being a notary, it is really in your best interest to invest in training.

5. The Notary Exam

Only 20% of U.S. states require notary applicants to pass a state-approved notary exam. Those states are California*, Utah, North Carolina*, Colorado*, Montana*, Louisiana, Maine, New York, Nebraska, and Oregon*. Interestingly enough, of those ten states, only the five with marked with a * require training as well. To reiterate, whether or not your state requires training, you should take a state-approved notary training course.

If your state requires a test, the notary exam is an hour long, multiple choice, closed book test. With the completion of a training course, the test should be relatively easy to pass with flying colors.

6. Background Check

The aforementioned states that require applicants to pass an exam, also screen applicants via a background check. At the end of your exam, the test proctor will collect your fingerprints and some basic information in order to run a background check on you. This further proves that you are free and clear of criminal history.

Conversely, most states do not require an actual background check to become a notary. However, if you are looking to advance your notary career to the level of a signing agent, a background check is mandatory. More on signing agents later in this article.

7. Notary Commission

You have seen the word “commission” referred to many times in this article. To clarify, a notary commission represents a notary’s certification for the job. Therefore, proving a notary has met all of the necessary guidelines to notarize documents in their specific state. Furthermore, notary commissions are finite. Most states notary commissions are valid for a period of four years before expiration. However, some states last as long as ten years. Once a notary’s commission expires, they must re-apply and re-qualify to legally provide notary services.

8. Surety Bonds

Most states require notaries to acquire a surety bond. A notary surety bond protects both the state and the public from financial harm. Purchasing a notary bond is a promise that you will do everything your power to serve your notary duties ethically. However, in the event that you accidentally make an error in a notarization, a surety bond will protect consumers.

Surety bonds can range in value from $500-$25,000. Although, most states require between $5,000-$10,000 worth of coverage. For example, Texas requires notaries to procure a surety bond worth $10,000 before they can legally notarize documents. A bond of this value costs $75 to acquire in the state of Texas.

Errors and Omissions Insurance

To be clear, a surety bond protects the consumer, aka the signer. Therefore, you, as the notary, are still liable for errors made in any notarizations in which you are involved. This is true in the case of errors made by you, or others involved. Consequently, it is essential that you protect yourself from liability with errors and omissions insurance.

Though not required by any U.S. states, it is in your best interest to acquire notary insurance. Notary laws are written to protect the public, hence the requirement of bonds. However, though not required, errors and omissions insurance is a smart move for any savvy notary.

Benefits of Errors and Omissions Insurance

It today’s society, it is entirely common for people to jump at the first chance to sue someone. Notaries are typically involved in the signing of documents of great fiscal responsibility. This puts notaries in a particularly vulnerable spot in terms of liability.

With Errors and Omissions Insurance, you will be covered in the event a lawsuit is filed against you. Your policy, within the constraints of the pre-determined limit, will cover the costs of lawsuits and claims made against you. This includes damages accrued from the inciting party, as well as court costs, and attorney fees associated with the lawsuit.

It is important to understand that even if the claim made against you is not valid, you will still have to pay for a legal defense to clear your name. Without this valuable coverage, you will be saddled with growing legal fees purely out-of-pocket.

9. File your Paperwork

As previously mentioned, most states notaries are regulated by the local Secretary of State’s office. Once you have completed your application, necessary training, and procured your surety bond, you will need to file the necessary paperwork with the appropriate governing body. Whether that is the Secretary of State or your local county clerk’s office.

10. Notary Supplies

Every practicing notary requires certain tools to notarized documents. Requirements vary by state, however, there are three essential items every notary should have:

1. Notary Stamp – A notary’s unique stamp, or seal, is essential to complete a proper notarization. These stamps vary in appearance but generally bear at least three pieces of information: the notary’s name, state of commission, and date of commission expiration
2. Journal – This journal is more specific than your run-of-the-mill daily journal. In fact, a notary journal specifically outlines the details of notarizations performed. This written record helps keep track of completed notarizations, as well as verify and defend past notarizations in the event of legal dispute
3. Notary Certificates – This document is where the notary themselves signs and stamps the document. There are different types of notary certificates, depending on the type of notarization performed. Be sure to check with your local offices about the necessary certificates

Once you have successfully completed the above steps, you are ready to become a notary! To ensure that you meet all of your state-specific requirements check the NNA database for how to become a notary by state.

Loan Signing Agent vs. Notary Public

Let’s take a moment to discuss the differences between a notary and a loan signing agent. Interestingly enough, all loan signing agents must be notaries first. However, not all notaries are loan signing agents. A loan signing agent, also referred to as a notary signing agent, is a more specialized and trained notary. Specifically, notary signing agents lend to documents involving loans and mortgages. These type of transactions require additional paperwork and training on the behalf of the notary.

Many people choose to become a notary signing agent as a form of a promotion. Notary signing agents tend to make more money than regular notaries and are in constant demand. The National Notary Association has a helpful guide on how to become a notary signing agent if you are interested.

Help! I Need to Get a Document Notarized

Furthermore, you do not need to be a notary to reap the benefits of the NNA. Undoubtedly, at one point or another in your life, you will need to get a document notarized. When that time comes, The National Notary Association has countless resources on how to prepare for a notarization. A few best practices:

• Save the Signing – As tempting as it is, resist the urge to sign your document before your notarization. While not legally required nationwide, you should always sign your document in the physical presence of a notary
• Bring the Party – You can save valuable time and money if all required signers are present at the time of notarization. Legally, you can have the signers sign at different times, even get the signatures notarized by different notaries. However, this takes significantly longer and requires more notary fees
• Bring Proper Photo Identification – An essential element of a proper notarization is the identification of the signer(s). Universally, a valid passport or driver’s license are the most widely accepted forms of photo identification

Be sure to check with your local notary about individual requirements for your state and type of document.

Find a Notary

With over 4 million notaries in the United States alone, locating their services should be a breeze. A few common places to find a notary are:

• Banks
• Public Libraries
• Car dealerships
• Real estate offices
• Insurance offices
• Some police stations
• Local courthouses or county clerk offices
• Certain mailbox stores, such as UPS

The National Notary Association also provides helpful resources regarding how to find a notary near you. Naturally, pricing and availability vary widely depending on your location. Always call ahead to make an appointment and get a quote. Better yet, if you live in a bustling metropolis, you can likely take advantage of the services of a mobile notary. These notary professionals will come straight to your doorstep and notarize your documents in the comfort of your own home or office.

The National Notary Association: In Summary

Since its founding in 1957, The National Notary Association has helped thousands of notaries around the country. Whether you have been a notary for decades, or are just starting out, the NNA is an invaluable wealth of information. Since notary rules and regulations vary widely across state lines, it is beyond helpful to have a resource like the NNA to clarify specific best-practices. If you are notary, consider joining The National Notary Association today.

Sources

https://www.nationalnotary.org/

https://www.nationalnotary.org/about-the-nna/mission-and-history

https://www.nationalnotary.org/signing-agent/nsa

https://www.nationalnotary.org/knowledge-center/reference-library/notary-public-code-of-professional-responsibility

https://www.notarylearningcenter.com/nsa_screen.html

https://www.nationalnotary.org/resources-for/public/find-a-notary

https://www.nationalnotary.org/resources-for/public/how-to-prepare-for-notarization

https://notarypublicunderwriters.com/national-notary-blog/245-national-notaries/1055-what-is-a-notarial-certificate

https://www.nationalnotary.org/support/faq/insurance

https://www.nationalnotary.org/support/errors-and-omissions-insurance/notary-bond-faqs

https://www.nationalnotary.org/knowledge-center/about-notaries/how-to-become-a-notary-public

https://www.nationalnotary.org/knowledge-center/reference-library/model-notary-act

https://www.nationalnotary.org/file%20library/nna/reference-library/2010_model_notary_act.pdf

Life is full of important documents. Birth certificates, marriage licenses, the property title of your first home. These pieces of paper are not only legal instruments but cherished markers of life’s big moments.  Unfortunately, not all paperwork is so gleeful in nature. No matter what stage of life you are in, thinking of your future is always a good idea. Inevitably, everyone has to “plan” for death. Specifically, drafting documents such as a living trust. In this article, we are going to detail everything you need to know about a living trust and more.

What is a Trust?

Before we dive into the nitty-gritty of a living trust, let us first discuss what a trust is. A trust is a common financial tool to pass assets from one party to another. Trusts are especially popular because they are a legal way to protect your assets and reduce taxes. Furthermore, a trust is commonly utilized to avoid the probate process. We will discuss probate later in this article.

What is a Living Trust?

A living trust is a legal document that details the whole of your assets within a trust during your lifetime. Upon your death, your assets will be legally redistributed to a pre-determined beneficiary, or “successor”. As previously mentioned trusts act as a way to avoid probate. In terms of a living trust, this notion is especially beneficial because the trust is handling the entirety of a person’s assets. Namely, what happens to them in the event they become incapacitated or pass away. These situations are often delicate and emotional. Forgoing court proceedings regarding asset distribution can be a real gift.

Why Should I have a Living Trust?

Planning for death is never fun, but it is necessary. Drafting a living trust can make this inevitable transition legally and financially easier on your family. If you are skeptical, below are some reasons you should consider having a living will.

Quick and Easy Distribution of Assets

A living trust will detail extensively your wishes in regards to the fate of your assets. Perhaps you have a home that has been in your family for years. Naturally, you may want to leave this home to your children to continue your family legacy. Any asset to your name will be assigned a beneficiary.

Upon your death, a representative of your estate will handle the pre-determined distribution of your assets. This process takes mere weeks compared to the year’s probate may consume.

Avoid Probate

With a living will, this process can bypass probate and save loads of time and money in the process. A living will places the ownership of your assets into a trust. Therefore, the trust, not you, owns the assets and property within the trust. This simple distinction is what keeps your estate from going through probate after your death. During your lifetime you still maintain control over your assets.

Your beneficiaries will still cover any outstanding debts with money from the estate. However, there will be more leftover by having avoided probate costs. Better yet, out-of-state properties bypass probate as well. Without a living trust, multiple probates may occur if properties are owned across multiple states.

Lessen Estate Taxes

The more valuable the estate, the greater the federal estate taxes. A properly composed living trust can help minimize estate taxes by utilizing tax exemptions. Who doesn’t love saving money on their taxes?

Peace of Mind

Dying is scary for a number of reasons. Chief amongst them – not knowing what is going to happen once you are gone. Having a living trust can help ensure your wishes are carried out after you pass on. You can rest easy knowing your family has been taken care of. Losing a loved one is hard enough without having to comb through layers of legal proceedings.

Maintains Privacy

A living will is a private, legal document. Before and after your death this fact remains true. A will, on the other hand, is subject to public record. Many people prefer to detail their wishes privately, understandably so.

More Control of your Estate

Accidents happen and sometimes people land in a sort of in-between state. For example, if they are in a coma or suffering from a debilitating disease. Should you become incapacitated –  your chosen trustee, as detailed in your living will, can handle your affairs. This prevents your estate from falling into the sticky legal hands of the court system.

What is Probate?

When people die, they leave a legacy behind. Every person has a legacy as unique as the life they led. People have families, friends, and a myriad of assets they accrue during life.  Assets can include homes, money, cars, and items of personal significance. When someone dies, their assets, also known as their estate, will go into probate for distribution. Furthermore, probate will include the transfer of debts the deceased person may have left behind. Even if a person has a will, their assets will go through probate.

What Happens During Probate?

Probate is a notoriously long and expensive process. In fact, probate can take six months to two years. During this time, the estate and all its assets are simply frozen in time. They cannot be used or sold until the terms of the probate are determined. Hence, why utilizing a living trust is a good idea. However, you may find yourself dealing with probate at one point or another. If that is the case, here are the steps you can expect:

1. Filing a Petition

First and foremost, a petition must be filed with the probate court. This petition will declare whether or not the deceased had a will. If they did not, you must assign an administrator to handle the estate. In the event the deceased had a will, the document will be submitted into probate.

Any living heirs of beneficiaries of the estate must be noticed of the court proceedings. Thus, giving them the opportunity to formally object the petition if they have just cause. Furthermore, the probate hearing will be announced in local newspapers. Therefore, potential unknown creditors of the late executor can be informed of their clients passing.

2. Take Inventory of the Estate

Additionally, if the appointed administrator of the estate learns of any outstanding debts owed by the deceased, they must inform the creditors post haste. Most states require a written notice be sent to the creditors. Should the creditors want to make a claim towards the estate, they have a set amount of time to do so. This period of time varies by state.

Then, a detailed inventory of the estate will be made. Everything from stocks, business holdings, property, furniture, and more. In some estates, a court-appointed appraiser will assign a monetary value to all necessary assets.

3. Pay Funeral Expenses and Debts

Debts owed will be paid back either with money from the estate or from selling various assets to meet the owed amount. The administrator will ensure that all requested claims are legitimate and true. Furthermore, the administrator of the estate will determine which assets will be sold to pay any lingering debts. Finally, the administrator will use funds from the estate to pay the necessary funeral expenses.

4. Property Title Transfers and Asset Distribution

Whatever assets remain after paying outstanding debts are distributed amongst the beneficiaries of the will. Typically, the will details specifically who receives which assets. In the event the deceased did not have a will, the states intestacy laws will determine the proper course of action.

Once proper courses are determined, asset ownership will be appropriately and legally transferred to the rightful heir.

Revocable Living Trust

In short, “revocable living trust” is another way of simply saying “living trust”. To extrapolate, with a revocable trust the terms can be changed at any time. The owner of the trust has the power to alter stipulations within the trust and add or remove beneficiaries as they see fit.

This type of trust has some notable benefits. First of all, life happens. Perhaps you fall out with someone who is currently named a beneficiary in your trust. You have the power to modify to remove them as a beneficiary if you so desire. Conversely, you may have someone come into your life after your trust was established that you would like to add! Furthermore, you can easily add and remove trust assets as they come and go in your life.

However, a revocable trust does have drawbacks. For example, when the owner of the trust passes away, the assets within the trust are taxed on the state and federal level. Furthermore, having greater control over the trust leaves your assets less protected from creditors. If the owner of the trust is sued, their assets are subject to liquidation to pay outstanding debts.

Irrevocable Living Trust

On the other hand, an irrevocable living trust cannot be altered once signed. Naturally, in certain circumstances, changes are possible – but incredibly hard to enact. This is due to the fact that the owner of the trust places all of their assets into the trust itself. Therefore, transferring ownership and control of the assets into the hands of the trust.

Why would someone choose to relinquish control? Well, irrevocable trusts have lucrative tax benefits. Since the assets are owned by the trust, they are not considered part of the owner’s taxable estate. Ultimately bypassing estate taxes when they pass away. Better yet, an irrevocable trust protects the benefactor of the trust. For example, the benefactor will not have to pay taxes on an income earned by the assets left to them within the terms of the trust.

How to Set Up a Trust

Clearly, there are pros and cons to both irrevocable and revocable living trusts. How do you choose which is best for you? In short, consult an attorney trained in trust law. They will help asses your unique situation and determine the best path for you. On the other hand, it is possible to make a do-it-yourself living trust. However, due to the complex nature of estates and trust laws, it is a good idea to at least have a lawyer review your living trust. Either way, below are some tips on how to create a living trust.

Keep in mind that trust laws and requirements vary from state to state. Avoid the headache of failing to comply with state requirements and consult the list of living trust requirements by state.

List out Your Assets

First of all, make a thorough list of all of your assets. To clarify, an asset is an item of value that can be converted into money. Common examples of assets include:

• Money – Money in the bank (checking, savings, etc), physical cash, treasury bills, etc
• Real Estate – Such as parcels of land, houses, businesses, or any physical structure
• Personal Property – Cars, boats, furniture, jewelry, etc
• Investments – Bonds, life insurance policies, annuities, pensions, mutual funds, stocks, retirement plans, etc

Keep in mind that assets may also take sentimental value over financial value. Perhaps your mother has a monetarily worthless necklace she wore on her wedding day. Items like this can lead to familial tension when not outlined in a will or trust. You may want to talk to your family about items they want, as to avoid tension when you aren’t there to mediate.

Leave a Paper Trail

Countless trust distributions have been slowed down by a lack of document preparation. Many of your larger assets will have important documents attached to them. Such as vehicle titles, property deeds, life insurance policies, bank information, etc.

When preparing your trust, be sure to include any relevant documents. This will wondrously expedite the transfer of assets when the time comes.

Select Your Beneficiaries

A beneficiary is a recipient of your trust assets upon your death. You can have as many beneficiaries as you would like. Beneficiaries often include family members, close friends, or even organizations such as charities. You have the power to determine who gets what specifically.

Knowing who you want as your beneficiaries, and who you don’t want before you draft your trust is a vital step in the process.

Furthermore, some of your assets may already have beneficiaries. For example, if you have a life insurance policy, you would have selected beneficiaries for that. Be sure to inform your attorney of any pre-determined beneficiaries in your existing assets. It is important that the name beneficiaries line-up in the trust, to avoid discrepancies and potential legal disputes later on.

Appoint a Successor Trustee

You, as the architect of your trust, are known as the trustee. This title gives you control over the assets within your trust during your lifetime. Every living trust must detail a successor trustee. This is a very important role whose importance should not be taken lightly. The successor trustee is responsible for paying outstanding debts and distributing your trust assets upon your death. This person is trusted to honor the wishes you had laid out during your life.

Furthermore, should the trustee become incapacitated, the successor trustee would take over the trust and be responsible for handling the necessary affairs.

Choose a Guardian for Your Children

To clarify, your living trust cannot legally detail who you want to care for your children in the event of your death. However, it is still a very important notion to consider. Talk to your lawyer about the appropriate paperwork to acknowledge this information.

What is a Will?

A few times in this article, we have referred to a “will”. Namely, the fact that a will must go through probate upon a person’s death. What else is involved in a will?

A will, or “last will and testament”, is a legal instrument that details a persons wishes upon their death. Most notably, a will details how you want your assets to be distributed. Similar to a revocable living trust, you can freely amend your will throughout your lifetime. Unlike a living trust, you can choose a guardian for children under the age of 18.

Living Trust vs. Will

Interestingly enough roughly 80% of Americans have a will instead of a living trust. This is in large part due to the fact that a living trust is more expensive to draft. Furthermore, a living trust requires financial attention throughout its maturity during your lifetime. There are undoubtedly pros and cons to both wills and living trusts. So how do you choose which is best for you? Some factors to consider when making your decision:

• Assets – Probate can wreak havoc on many of your assets. Especially if you own a business, consider using a living trust to bypass your company getting tied up in probate. Furthermore, some states all wills to bypass probate if the estate is valued under a certain amount
• Location – To reiterate, state trust and estate tax laws vary widely. Check with your attorney about what benefits and disadvantages wills and living trusts have depending on your state of residence
• Beneficiaries – In a living trust, you can details when a beneficiary can reap the benefits of the assets left to them. For example, you may not want to leave a fifteen-year-old several thousand dollars. Instead, you may choose for them to be able to access that money at the age of your choosing. Additionally, you may dictate that the money left to them must be used for certain actions, such as paying for college
• Taxes – A living trust is often preferred for large estates because it helps reduce the cost of estate taxes on both the state and federal level

Ultimately, everyone has a unique set of reasons that make their estate between suited for either a will or a living trust. Consult your lawyer about which is the best choice for you.

Notarizing your Living Trust

If it not already apparent, a living trust is an incredibly important document. Once you have drafted your living trust and gotten approval from an attorney, you should get it notarized. Getting a document notarized makes it more official in the eyes of the law. Notarization is when a representative of the secretary of state (called a notary) witnesses the signing of documents of great importance. A notary does not simply watch someone sign documents. Instead, a notary prevents fraud by confirming the intent and identity of the signer(s).

First, a notary will confirm the signer’s identity with a valid photo i.d. Then the notary will confirm that the signer understands the entirety of the document. Finally, the notary will ask the signer if they are signing by choice. The notarization will be complete when the notary themselves signs and stamps the document with their unique notary seal.

How to Prepare for a Notarization

If you are unfamiliar with getting documents notarized, it is helpful to know how to best prepare for your appointment. First of all, it is important to understand the distinction between a notary and a lawyer. In the previous section, you read that a notary will ask you if you understand the document. If you say “no”, understand that the notary cannot translate for you or give you legal advice. Therefore, you need to consult a lawyer or translate the document yourself prior to visiting a notary.

Once you are comfortable with the contents of your document, here is what you need to bring to your notary appointment:

1. Proper photo identification – Such as a valid drivers license or passport.
2. The Document – Ensure that any required fields are filled out beforehand, but wait to sign until you are in the presence of the notary
3. All signing parties – You can save valuable time and money by bringing all necessary signers to the notary appointment to sign at the same time
4. Notary Fee – While some places (like your bank) may offer complimentary notary services, most notaries will charge a small fee per signature

Please note that notary laws and requirements vary by state.

Living Trust: In Conclusion

A living trust is an important legal document that determines the fate of everything you worked hard for in life. A living trust has loads of benefits for both you and your beneficiaries. However, these benefits vary based on your state of residence and the contents of your estate.  The legal weight of a living trust should not be taken lightly. Be sure to consult a well-informed attorney to determine your best course of action regarding your end of life planning.

Sources

https://www.thestreet.com/personal-finance/education/what-is-living-trust-14726491

https://www.legalzoom.com/articles/what-does-a-living-trust-do

https://www.bankrate.com/investing/what-is-a-trust/

https://www.legalzoom.com/articles/how-to-choose-between-a-living-trust-and-a-will

https://www.investopedia.com/ask/answers/12/what-is-an-asset.asp

https://www.nationalnotary.org/resources-for/public/how-to-prepare-for-notarization

https://www.legalzoom.com/articles/will-vs-living-trust-whats-best-for-you

https://www.legalzoom.com/articles/top-three-benefits-of-a-living-trust

https://www.investopedia.com/terms/t/trust.asp

https://www.investopedia.com/terms/l/living-trust.asp

https://www.legalzoom.com/articles/top-5-must-dos-before-you-write-a-living-trust

https://www.superiornotaryservices.com/blog/what-need-document-notarized/

https://www.investopedia.com/ask/answers/071615/what-difference-between-revocable-trust-and-living-trust.asp

https://www.legalzoom.com/articles/the-probate-process-four-simple-steps