Identification

• The irrevocability or revocability of a living trust must be defined before a trust is signed into effect. If a trust grantor wishes to relinquish all control over and admittance to trust property, he should create an irrevocable trust. As the name suggests, an irrevocable trust cannot be revoked or altered once created. The only alternative is a revocable trust. A revocable trust can be revoked and altered during the trust grantor's lifetime.
  
  

Trust Instruments

• A trust grantor can transfer real estate property and other assets into a living trust using an assignment form or an agreement for sale and purchase form. The former does not require payment for the relinquished property, whereas the latter does. Even if a trust grantor sells real estate property to a trust, he can file a deed of acknowledgment of debt to relinquish the asset or assets without payment. Frequently, trust grantors pursue a sale agreement when transferring the title of an item that exceeds the gift-exemption threshold. According to the IRS, the annual gift-exemption threshold is $13,000, as of 2009. The trust grantor can forgive the debt over time in accordance with state gift-giving laws.
  
  

Appraisals

• An appraisal of real estate property is not always necessary. According to the Basic Estate Planning Fact Sheet Series, published by the Ohio State University Extension program, an appraisal is only needed if gift tax forms need to be filed. State gift-giving laws vary, so visit your state's legislative website to learn about your state's gift-exemption threshold. For example, in Ohio, estates valued at less than $338,334 do not require the filing of Ohio or federal tax forms, so an appraisal is unnecessary, according to Ohio State University. A federal tax form is required if a trust owns combined gross assets of $3.5 million. This figure is effective for decedents dying on or after Jan. 1, 2009.
  
  

Appraisal Process

• A real estate appraisal involves a number of steps. First, the appraiser measures the property's size, including its height, width and square footage. The appraiser also assesses the condition of the property's water, sewage and electrical systems, looking to determine the overall condition of the property. To complete the appraisal process, the appraiser factors in statistical information for the surrounding neighborhood. Criteria that can boost a property's value include a close proximity to desirable services and the completion of major repairs to the property's structure.