What is a Living Trust?

A Living Trust is a legal entity that is the backbone of your Estate Plan. A Living Trust can do the following:

• lets you put conditions on how and when assets are distributed after your death,
• help minimize gift and estate taxes,
• avoid probate (an expensive, time consuming and public court process),
• help you manage your assets if you were not able to manager them yourself because you were incapacitated. (Without a living trust, you would need to ask the court to appoint someone to manager your financial affairs, “conservatorship”)

Living Trust

Although it seems complicated, a living trust simplifies your estate plan.

• You have a Living Trust created.
• You transfer your assets to your Living Trust and manage everything like you were before.
• You have a Last Will & Testament created which “pours over” your estate into Living Trust at your death.
• At your death, your assets are distributed according to the trust.
• Once all your instructions are executed, the trust ends.

Using a trust is one of the only ways to avoid probate. It functions like a Will. You use them to leave your property to the people you choose. They are sometimes called “revocable living trusts.” “Revocable” simply means that change your mind at any time while you’re alive or you can change the terms of the trust or revoke it altogether.

A living trust is the most important part of a comprehensive Estate Plan because of the benefits mentioned above. It will only simplify your estate plan if drafted correctly. It is imperative that you have a valid living trust.

We can help you understand how Trusts in California works and together we can help create a comprehensive Living Trust catered to your family’s needs. Contact us at 818-649-9110 or click here a free consultation. Our Los Angeles and Glendale revocable living trust attorneys proudly serve surrounding cities.