All you need to know about living trusts in California

Most of the people prefer making a will to pass on their possessions to the heirs. With time, this trend is changing with many people opting for Living Trusts in California . A revocable trust provides many before and after-death advantages as compared to a will. Whether or not a living revocable trust is the best choice for you primarily depends upon the circumstances. You will need to consult a qualified attorney and a personal financial adviser for the estate planning, but there are few things which you must know in context to living trusts:

The first thing is to know the meaning of a revocable living trust. It refers to a written agreement which designates the responsibility to someone for managing your property. It’s called a living trust as it comes into existence while you are still alive and revocable because you can change or dissolve the trust at any time at your own discretion as long as you’re mentally competent. A living trust becomes irrevocable or irreversible after you die. A living trust involves three parties: you as the creator, the trustee or trustees who are willing to manage your property as per the terms of the trust, and the beneficiaries. You’d certainly prefer yourself and your spouse as trustees because this will allow you to have complete control of the property while you’re alive. Being a trustee you have the power to do anything with the assets- sell them, exchange them, and invest them or whatever you wish to do with them.

No doubt, both will and a living trust contain inheritance instructions but a living trust provides you with more privacy as compared to a will. Unless and until a trustee or beneficiary claims for court approval of accounts, a living trust will not be made public. For people who have modest estates, will is a better choice as will is less complicated and less expensive than a trust. You should always leave valid instructions about your property either through a will or a trust; otherwise it might happen that the state would assign such a person to manage the distribution.

A living trust provides you with relief and peace of mind that your property and assets will be protected if God forbid such a mishap occurs that you become unable to manage your financial affairs. Having a trust eliminates the need of a probate court while passing your estate to your heirs. A trust can also serve the purpose of powers of attorney. The living trust can be written in such a manner that either the assets will be passed on to the beneficiaries immediately after your death, or they can be provided to them over time and in amounts or say installments as you mentioned in the trust. The state and federal taxes can be reduced by including tax saving clauses. A displeased heir can challenge the trust in the court. If you remove anyone from theLiving Trusts in California , he or she can file a case in the court just like a will can be challenged.