There are numerous different tools in the estate planning tool kit, and you should make informed decisions, because leaving everything that you have to those that you love the most is a profound endeavor. With this in mind, we will look at the value of using living trusts in California in this post.
Alternative to a Last Will
Most people have heard of the document called a last will, and you may assume that you should use a will if you are not extraordinarily wealthy.
In fact, a revocable living trust can be a better solution for a wide range of people, and it is not an extraordinarily complicated document.
Furthermore, the probate process in California is very expensive, lengthy and time-consuming, and can lead to a monetary loss due to “family drama.” Therefore, a Revocable Living Trust is the proper solution in California.
Efficient and Ongoing Control
With a revocable living trust, you do not surrender control of the assets while you are alive. You can act as the trustee, so you would handle the business of the trust. The person who creates the trust can also act as the beneficiary initially.
Since the trust is in fact revocable, you can dissolve it entirely and take back direct personal possession of the property that you conveyed into it at any time.
This level of control is comforting for many people, because you can access the assets throughout your life. It is also relatively simple to add property to the trust along the way, and you can remove property from the trust as well.
Postmortem Asset Transfers
The ultimate objective is to use the trust as a vehicle of asset transfer, so you name a successor trustee to administer the trust after you pass away. You also name successor beneficiaries.
Another advantage that you gain when you create a revocable living trust is the ability to record very specific instructions that the trustee must follow with regard to asset distributions. Many people would like to see their loved ones receive incremental distributions over an extended period of time. You can make this happen when you create the trust declaration.
After you die, the trustee will follow these instructions. Assets can be transferred to the beneficiaries in accordance with your wishes, and these transfers would not be subject to the process of probate.
If you were to retain direct personal possession of the property and arrange for its transfer through the terms of a last will, the heirs would not receive their inheritances until after the probate process was completed. This can take close to a year, even if the case is relatively simple and uncomplicated.
Free Report on Revocable Living Trusts
If you are interested in the possibility of creating a revocable living trust after hearing these facts, download our special report to learn more. This report is free, and you can visit this page to access your copy: Free Living Trust Report.
To Schedule a Free Consultation
If you are interested in the possibility of working with our firm after learning these facts, please select our “Workshops” tab to RSVP for a free estate planning workshop. At that workshop you will be offered a free one-hour consultation with an attorney: www.collinslawgroup.com/seminars/
- How to Leave Assets for Your Minor Children in Your Estate Plan - July 21, 2021
- Can a Beneficiary Sell His/Her Interest in a Trust? - July 19, 2021
- 5 Things to Consider When Creating Your Estate Plan - July 16, 2021