Allen Barron, Inc. works to avoid the high cost of probate and to avoid confusion at the time of an unexpected death. Perhaps you are concerned what will happen when you pass on and how will your estate be distributed to your loved ones? A Living Trust may be the answer you are looking for and our professional and experienced living trust attorneys can help you.
We have expertise in the drafting and implementing of Living Trusts including Pour Over Wills, General Powers of Attorney, Durable Powers of Attorney for Health Care and Medical Directives as well as AB Trusts, and other property dispositions.
What are Living Trusts? Living (or inter vivos) trusts are trusts you create while you are alive. These are different from testamentary trusts which you create in a will. One of the advantages of a living trust over a testamentary trust is that living trusts avoid probate while testamentary trusts do not.
What is a Revocable Living Trust? The most common form of living trust is the revocable living trust. This kind of trust can be amended in any way or fully revoked while you are alive. By contrast, an irrevocable trust cannot be amended or terminated once it has been created.
Settlors, Trustees, and Beneficiaries. The person who creates a trust is generally called the trust "settlor" in California. The person legally entitled to manage the trust property is the "trustee." The person for whose benefit the trust is created and managed is the "beneficiary." The settlor, trustee, and beneficiary can be the same person or persons, or they can be different persons.
Joint and One-Settlor Trusts. Trusts can be created by multiple persons, for example couples (married or otherwise), or one person.
Probate Avoidance. Revocable living trusts are very useful in states such as California where probate is a burdensome process. By creating and implementing a living trust you can avoid a probate. At death, trust assets are distributed according to your instructions in the trust by the successor trustee named in the trust instrument without court involvement. Trust provisions need not become public.
Trustees During Life. Generally the settlor is the trustee (and beneficiary) of a revocable living trust during life. Thus the settlor retains complete control over and ownership interest in the trust assets. Both spouses generally act together as co-trustees of a joint trust. When one spouse becomes incapacitated or dies the remaining spouse can be the sole trustee.
Successor Trustees. When the settlor/trustee becomes incapacitated or dies, the successor trustee named in the trust instrument takes over management of the trust property without court involvement. The successor trustee(s) can be children or other relatives or friends who are responsible and in whom the settlor has confidence. The successor trustee can also be a bank. This is called a "corporate trustee." If the successor trustee is also the beneficiary of the trust at the settlor's death, the successor trustee's only duty may be to distribute the property to him- or herself at that time.
No Conservatorship. As mentioned above, should the settlor/trustee become incapable or unwilling to manage his or her assets during life, the successor trustee named in the trust instrument can take over the management of the assets without a court having to appoint a conservator.
Subtrusts. After death, assets which would otherwise be paid outright to beneficiaries can continue to be held and administered in one or more irrevocable subtrusts according to the trust instructions, for example, for minor or disabled children. The subtrust can remain in existence for the entire life of the beneficiary or terminate with the trust property being distributed outright to the beneficiary at a specified age. Holding property in trust for a minor or incapacitated beneficiary can avoid a court-appointed guardian or conservator for that beneficiary.
Trust Funding. If a living trust is used in an estate plan it is essential to "fund" it; that is to transfer assets into it during the life of the settlor. If this is not done the probate-avoidance advantages of a living trust may not be realized. The attorney who prepares your living trust should assist you in the funding process. Assets can be added to or taken out of trust at any time without having to amend the trust instrument.
The living trust lawyers in San Diego, California at Allen Barron, Inc. can assist you in all your trust matters, from creation, to funding to tax planning. Call us today for a free consultation at 866-493-5400.
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