🌻 How to Set Up a Trust in Alabama (2025 Guide)

Alabama residents are turning to revocable living trusts to keep their estates out of probate, protect privacy, and make sure their loved ones inherit quickly and smoothly.

If you want to set up a legal trust in Alabama without paying thousands in attorney fees, this guide breaks it all down for you.

🔍 What Is a Trust?

A trust is a legal entity where one person (the grantor) transfers assets to be managed by a trustee for the benefit of designated beneficiaries.

The most common in Alabama is the Revocable Living Trust, which:

✅ Lets you keep control of your assets while you're alive
✅ Avoids the long and costly Alabama probate process
✅ Ensures fast distribution of assets to loved ones after death
✅ Protects your privacy — unlike a will, a trust stays private
✅ Prepares you for incapacity or illness

📍 How to Set Up a Trust in Alabama

1. Choose the Right Trust Structure

The best choice for most Alabama families is the Revocable Living Trust. It’s:

• Fully legal and recognized under Alabama law

• Flexible (can be amended or revoked)

• Useful for both estate planning and incapacity planning

Optional add-ons include:
☐ Minor’s Trust
☐ Special Needs Trust
☐ Spendthrift Trust
☐ Dynasty Trust

✅ TrustGenie includes all these optional subtrusts in a single package.

2. Assign the Key Roles

☐ Grantor – You, the person creating the trust
☐ Trustee – Usually you (while you’re alive)
☐ Successor Trustee – Takes over if you’re incapacitated or pass away
☐ Beneficiaries – Those who will receive your assets

3. List and Organize Your Assets

Trusts can include:

• Alabama real estate

• Bank accounts

• Stocks, bonds, retirement accounts

• Vehicles and valuables

• LLCs and businesses

• Digital assets (e.g., crypto, domains)

✅ TrustGenie includes Schedule A and a General Assignment form to help you inventory and assign assets properly.

4. Sign and Notarize the Trust

Alabama law requires that the trust:

• Be in writing

• Clearly name trustees and beneficiaries

• Be signed and notarized

Witnesses are not required in Alabama, but notarization is essential.

✅ TrustGenie provides the correct execution page for Alabama.

5. Fund the Trust

This step is crucial to avoid probate.

To fund your trust:

☐ File a Warranty or Quitclaim Deed to transfer real estate into the trust
☐ Retitle bank and investment accounts
☐ Use the General Assignment to transfer personal property
☐ Update life insurance or retirement account designations (optional)

🚨 An unfunded trust will NOT avoid probate in Alabama.

⚠️ Common Mistakes in Alabama

❌ Skipping the funding step
❌ Using a one-size-fits-all template not tailored to Alabama law
❌ Not including real estate in the trust
❌ Failing to notify or educate your Successor Trustee
❌ Leaving out a Minor’s Trust or Special Needs Trust when needed

💰 What Does a Trust Cost in Alabama?

Method Cost Range Attorney$2,000 – $5,000+ DIY Templates$100 – $400 TrustGenie$150/year – all-inclusive

✅ TrustGenie includes Alabama-specific documents, notary guide, deed templates, and support.

🧠 Do I Need a Lawyer to Set Up a Trust in Alabama?

No. Alabama law allows any competent adult to create a valid trust that:

• Is in writing

• Names a trustee and beneficiaries

• Is signed and notarized

• Is funded with assets

✅ TrustGenie makes this process simple, legal, and affordable.

📎 Free Download: Alabama Trust Setup Checklist

Need a printable step-by-step list?

📥 [Download the Alabama Checklist] (available in plain text upon request)

✅ Ready to Get Started?

Thousands of Alabama residents are protecting their legacy, avoiding probate, and gaining peace of mind with TrustGenie.

👉 [Create Your Alabama Trust – $150/year]

🔗 Related Articles:

• [Avoiding Probate in Alabama]

• [How to Transfer Alabama Property into a Trust]

• [Trust vs Will in Alabama: Which Is Better?]

✍️ Written by:
TrustGenie Legal Team
Helping families in the Heart of Dixie create smarter estate plans