Revocable Living Trusts
San Diego’s Trusts & Estates Law Firm Naimish & Lewis, APC, Your Legal Advocates.
Sometimes referred to simply as a living trust, this is a legal document that is created by an individual during their lifetime in order to take ownership of the creator’s assets for various reasons. Think of a living trust like a personal wall safe, created to hold your valuable possessions. A living trust holds ownership of your assets in order to, amongst other things, keep those assets shielded from probate. The creator of the trust is called the “Settlor” or “Trustor”, and the individual in charge of the trust and the property within in referred to as the “Trustee”. In most cases, the Settlor will also serve as the Trustee until they become incapacitated or pass away, at which point the Settlor’s chosen successor trustee takes over.
A living trust is one of the most common tools used to avoid probate. To understand why probate avoidance is important, see further information regarding probate. Probate is also a public proceeding, so by avoiding probate you also prevent the details of your estate from becoming open to the public. This is something that a simple Will does not do. When an individual passes away with a living trust, the successor trustee can control the trust assets and make distributions to the Trustor’s beneficiaries without court involvement.
Do I Need a Trust?
The most common purpose of a trust is to avoid the time and expense of probate. This purpose alone is enough to warrant creation of a trust. If your estate value will be over the probate threshold requirement, you have cause to create a trust. If you own real property in California, you have cause to create a trust. When your estate plan involves a living trust, the trust will likely be the primary focus, maintaining and eventually controlling the distributions of the bulk of your estate. A living trust should always be accompanied by a pour-over will in order to transfer any assets into the trust that were left out.
There are many other reasons for wanting or needing a trust. A trust gives you the added benefit of privacy, as your estate will likely avoid a public probate proceeding. A trust can also assist in tax planning, asset protection, disability planning, and planning for your inheritance to account for some of the various combinations of beneficiaries alive at the time of your death. The last one may be especially important when it comes to blended families, or families with children from previous relationships.
Revocable Living Trusts during your lifetime
Going back to the personal wall safe analogy, a Living Trust holds your assets in trust during your lifetime and gives you, as Trustee, access to the trust to transfer assets into or out of the trust. As long as you are alive, you hold the “key” (as if it were a safe) to your trust to take things out and put things in as you wish. You then choose a successor trustee to get the “key” to your trust if you become incapacitated or die. Along with that “key”, you also are providing a set of instructions on how to manage and distribute your assets. After you die, your successor trustee is put in charge of the trust to manage and distribute the assets according to your wishes. The process of managing and distributing your assets after death is called Trust Administration.
Every Estate Plan is Unique
Contact Naimish & Lewis Today for Guidance from One of Our Experienced Attorneys.
Our attorneys offer an exceptional service when it comes to Trust Administration and Estate Planning. Naimish & Lewis provide individually tailored estate plans, as well as assistance in navigating estate administration, probate, conservatorship, and guardianship issues.
You may be in need of a little advice right now. We’d like to meet you. If you are struggling with a serious family law issue or you’re planning for the future, Naimish & Lewis can help. Connect with us now for guidance from one of our experienced attorneys. Contact Naimish & Lewis, APC today.
