Is A Revocable Living Trust Right For You?

Here’s a basic guide on what a revocable living trust entails.  We often hear the term “trust” when it comes to protecting one’s assets but we often don’t know what it exactly entails.  Here’s a brief guide on a revocable living trust – it is by no means exhaustive so if you are in California, we encourage you to contact us for a free consultation.

What is a Living Trust?

A living trust is a title holding arrangement. The following example illustrates how a living trust would work with person A and person B:

• A places his/her assets in a living trust for A’s own benefit while still living.
• A is both the Trustor and Trustee – Trustor is the creator of the trust and Trustee is the person who handles the administration of the trust. A can also designate Trustee duties to another person.
• A names a successor trustee B in the trust to handle the administration when A dies or becomes incapacitated.
• Upon A’s death, the assets in the trust are then transferred to A’s designated beneficiary or beneficiaries by the successor trustee

What Does Revocable Mean?

A revocable living trust is among the most commonly used trusts in estate planning. Revocable means that the creator of the trust, commonly known as the Trustor, retains the right to revoke, change the terms, or take back the property from the trust at any time.

Why You Should Have A Revocable Living Trust

• Avoiding Probate
  1. LOWER COSTS — Fees for drafting, funding and administering a trust are usually much less than fees for administering a probate estate
  2. PRIVACY — Trust instruments do not become public documents
  3. LESS DELAY AND LESS BURDEN — The delays associated with probate administration can be avoided after death. Probate can take at least five (5) times longer than trust administration.

• No need for a conservatorship
  1. Use of a living trust can avoid the necessity of a conservatorship, because a trustee or successor trustee can simply continue managing the trust estate.
• Will substitutes: Living trusts are often effective will substitutes for all of these reasons. Note, however, that it is important to remember that trusts govern only assets that are successfully transferred as trust property.
• Protect Your Assets: When you place property in a living trust, it may offer an additional layer of protection.

In California, if you have over $150,000 in assets, you can definitely reap the benefits of having a living trust. For most people in California, this means that anyone who owns property should have a trust.

How We Can Help

CTK Law Group can assist you with ensuring that your loved ones and assets are protected. Our trust packages provide all the necessary documentation associated with a living trust. Our attorneys take the time to assess your situation and offer free 30-minute consultations. Contact us today!

The information provided in this article is not legal advice and does not purport to be a substitute for advice of counsel on any specific matter. For legal advice, you should consult with an attorney concerning your specific situation.