If you live in California and are considering creating a revocable living trust, it’s essential to understand the benefits and potential drawbacks of this trust type. A living trust is a legal document that allows you to manage your assets and determines asset distribution after death. This post will explore why a living trust may be a good option for you.
One of the main benefits of a revocable living trust is that it can help you avoid the costly and time-consuming probate process. When you create a trust, you transfer ownership of your assets to the trust. So, when you die, your assets will not have to go through probate court, which can be lengthy and expensive.
Another benefit of a living trust is that it can help you maintain privacy. When you create a will, your assets and distribution plan become a matter of public record. A trust is not subject to the same level of scrutiny, so your assets and distribution plan can remain private.
Simplify asset distribution
A revocable living trust can also make it easier for your loved ones to access and distribute your assets after you have passed. You can specify exactly how and when your assets disburse, rather than leaving it up to the courts to determine.
Administration of the trust
Once you have created a trust, it’s vital to understand the trust administration process. Trust administration manages the assets, pays any debts or taxes and distributes the assets according to the terms of the trust.
If you are the trustee of the trust, it will be your responsibility to handle administration. Due to the complexity, many trustees work with a lawyer or financial advisor to ensure proper trust management.