A living trust is a legal document that can help you pass on your possessions after death. However, it requires re-titling most assets in the name of the faith and a permitted transfer.
Probate is a lengthy, costly, and public process. A reasonable California estate planning attorney can advise you about revocable trusts and how to avoid probate.
It is revocable
Estate planning can seem complex, stressful, and redundant. After all, why plan for things that happen after you die? But that view misses the point. The core of estate planning is empathy: giving your loved ones the tools to help you if you become incapacitated or die.
A living trust is a very effective way of doing this. A living trust allows you to give your heirs access to assets in the event of your incapacity or death without going through probate. Probate can be time-consuming and expensive and detract from the amount your heirs will receive. A revocable living trust avoids this problem by placing your assets into the trust and allowing you to name a trustee who will distribute them according to your stipulations.
Typically, the person who makes the trust is known as the grantor. The grantor may appoint themself as the trustee while alive, or the trust instrument will designate another individual or financial institution to serve in this capacity. In the latter case, this person is often called the co-trustee. The trustee or co-trustee may also be designated successor trustee when the grantor dies or becomes incapacitated.
The trustee of a revocable living trust can access the funds in the faith at any time and even revoke the trust if they choose to do so. In addition, revocable living trusts can receive FDIC insurance for up to $250,000.
It is irrevocable
A living trust is a tool that can be used alongside a last will to ensure that your wishes are carried out after you pass away. There are two types of living trusts: revocable and irrevocable. A revocable living trust lets you retain control of the assets you transfer, while an irrevocable one forfeits your ownership rights.
A trustee will take care of the assets in your trust and distribute them to beneficiaries after you die. The trustee can be a family member or professional. It is essential to consider any debts tied to your assets and make a list for the trustee and executor to pay off before distributing the assets.
Another advantage of a living trust attorney in California is that it can be used to minimize estate taxes and provide asset protection. A revocable living trust can be modified while you are alive, but an irrevocable one cannot. It can also help you avoid probate.
If you’re considering including a living trust in your estate plan, talking with an experienced attorney is essential. You can use a free tool to be matched with financial advisors who serve your area. Start the process now. It only takes five minutes, and there’s no obligation. The more you know about a living trust, the better decision you’ll be able to make for your long-term goals.
It is a trust
A living trust is a legal arrangement allowing individuals to transfer ownership of their assets into a separate entity while retaining control of those assets during their lifetime. The person who creates the trust, called the grantor, must re-deed their property, remove themselves from the title of vehicles and document financial accounts to ensure that all items are in the name of the trust (a process known as “funding”).
When the grantor dies, the successor trustee will distribute the assets according to the terms outlined in the trust. The transfer is typically completed outside of probate. However, it’s not a one-size-fits-all solution, and grantors need to understand the pros and cons of a living trust before making their decision.
In addition to avoiding probate, a living trust can be used to protect minor children’s assets. This can be accomplished by naming a guardian in the faith. A living trust can also contain a “pour-over” will, a safety net for assets not transferred into the trust before death.
The biggest downside of a living trust is that it costs money to create and maintain. A lawyer must prepare the documents and filing fees may be required to change the titles of some assets. Additionally, there are ongoing costs to manage the trust and its successor trustees.
It is a legal document
Despite the claims of some door-to-door salespeople, living trusts are not magic documents that will avoid all probate costs or speed up the process. They are legal documents, and a lawyer should be used to draft them. A living trust is usually just one part of an estate plan. A complete estate plan includes other documents that may need to be prepared and updated over time, depending on family dynamics, asset movement, health, life changes, or even new legislation.
A living trust typically names a trustee who will manage the assets of the faith in the event of your incapacity or death. The trustee can be a family member or someone else you choose, such as a bank. The trustee can also be the guardian of your minor children, if necessary. Guardianship is divided into two parts: physical custody and control of the child and guardianship of the estate (which is control of the money). A living trust will likely name a guardian for each but may include backups in case either choice is unavailable or unsuitable. When establishing a living trust, you must gather all the titles and deeds to property, stock certificates, bank account information, and other critical financial documents to “fund” the trust. This is the only way to make sure the trust takes effect and protects you. In addition, you will want to make a “pour over” will, which is a backup for any assets that do not go into the living trust during your lifetime.
