When I meet with clients one of the first questions they ask me is “What is a Living Trust?” A living trust is a legal document that allows you to designate who will inherit your house, your personal belongings, and your money when you pass away. A living trust also allows you to designate someone to be your trustee. The trustee will protect your assets, carry out your wishes, and make sure your beneficiaries receive their inheritance.
One of the biggest benefits to a living trust is that assets in a living trust do not go through probate.
Many of my clients also ask me “What is Probate?” Probate is a lengthy court process that requires court hearings, complicated legal documents, and a judge’s approval over all actions by your executor. Many probates can take up to two years and can cost tens of thousands of dollars in legal fees and court costs. By properly setting up your living trust you can save time and money – and avoid probate!
Most of my clients are concerned about protecting their house from going through probate. They want to make sure that when they pass away their house will quickly and inexpensively be transferred to their children, other family members or friends without the hassle and delay of going to court. You should not only set up your living trust, but make sure your house is properly transferred and titled in the name of your living trust. It is important to work with an experienced estate planning attorney to make sure that this is done right and your house does not go through probate.
A living trust also allows you to provide for beneficiaries who should not receive their inheritance all at once. Clients often ask me about setting up a “Trust Fund.” A living trust can create a trust fund allowing your trustee to manage the inheritance of certain beneficiaries so the trustee can make sure they do not receive it outright, but instead receiving income over their lifetime. This can be necessary when a beneficiary is too young, has a drug or alcohol problem, is married to someone you disapprove of, or is likely to spend all of their inheritance on one wild weekend in Las Vegas. You can include a trust fund provision in your living trust to protect certain beneficiaries from themselves.
Your living trust can always be updated during your lifetime. Most of my clients will amend their living trust two or three times. As long as you are able to, you can amend your living trust to change the beneficiaries, the amount of their inheritance, or the person who will be your trustee when you pass away. Again, it is a good idea to consult with an experienced estate planning attorney before you update your living trust.
Living Trusts FAQs
Do you have questions about Living Trusts? Visit our Living Trust FAQ page and read frequently asked questions about living trusts and estate planning. If you have additional questions or would like to schedule a consultation, please contact us.
Create or Update a Living Trust
For more information on creating your living trust or updating your existing living trust, contact Estate Planning Attorney, Eric A. Rudolph Esq., at (760) 673-7600 or schedule an estate planning consultation.
