Revocable Living Trusts In Roseville, California
Understanding The Basics Of Revocable Living Trusts in Roseville, California, 95661
A revocable living trust is created during the trust maker's lifetime, usually to avoid probate proceedings at the trust maker's death. The trust can be revoked or changed by the trust maker during his or her lifetime without any liability to anyone (the trust maker remains in complete control over the assets in the trust). Once the trust maker passes away, the trust is distributed by a trustee (a third party who holds and manages the trust asset for the benefit of the trust beneficiaries) according to its terms. It is a way for a person to manage and control their assets while living and have them passed on to their loved ones when they die.
The types that can be transferred to a trust include, but are not limited to:
- Real property (e.g., homes, farms, vacation homes)
- Deposit accounts
- Investments (e.g., stocks, bonds, money market accounts)
- Business interests
- Collectables, art, and antiques
- Life insurance policies
Advantages Of Revocable Trusts
There are distinct advantages to using a revocable trust as an estate planning tool, including:
The ability to avoid probate is the main reason people consider placing assets in a revocable trust. Probate is the process where a decedent's estate is administered through the court system. It can be a tedious and time- and money-consuming procedure. Assets placed in a revocable trust typically do not have to go through this court-supervised process.
While there are other types of trusts, the revocable trust remains a popular choice due to its flexibility. The creator of the trust is able to make changes to the trust up until the time of their death.
A trust provides protection in case of testator incapacity. In other words, if the person who creates the trust later becomes incapacitated (develops dementia, for example), a new or successor trustee can take over the management of the trust. They will also be required to administer the trust according to its terms.
If maintaining privacy over your assets is important to you, a revocable trust is an option worth considering. Assets placed in the trust are administered to beneficiaries privately, unlike assets administered through the probate process, which is public.
Terminating a Revocable Trust
The good news, and the reason most people choose to use a revocable trust, is that the trustor retains the right to terminate it when they decide to do so.
Typically, you will need to execute a trust revocation document and “defund” the trust, which means removing the assets placed in it. This may involve re-issuing titles, deeds, and other documents out of the name of the trust.
Contact a Trust Lawyer in Placer County, California, 95661
A revocable trust can offer many benefits. They can be used to protect your assets and help family members or other individuals or organizations for which you care a lot. To find out if a revocable trust is right for you and, if so, which type of revocable trust best aligns with your interests, contact our estate planning attorney by using the online form or calling us directly at (916) 619-2349 to schedule a free initial consultation. We will listen to your wishes and concerns and develop a customized estate plan that works for you.