REVOCABLE LIVING TRUSTS
All individuals should consider setting up a revocable living trust to gain control of their estate regardless of your age or the amount of your estate. This trust is a document that directs who your assets shall be distributed to and in what manner the distribution shall be made. However, there are other many other options besides living trusts if you are not ready to set up a trust.
MOST COMMON ESTATE PLANNING QUESTIONS
What is a Revocable Living Trust?
A revocable living trust is a document you create to pass your property to your family without going through probate. During your lifetime you hold three positions in this document:
- Settlor: you create the trust
- Trustee: you manage all the property you have funded into your trust
- Beneficiary: you are the owner of all the property in the trust
This trust can be changed and modified at any time as long as you are still living.
What is probate?
Probate is the procedure of passing property to your family with court supervision. A petition must be filed with the Superior Court, notices must be mailed out to all family members, a notice must be published in the local newspaper regarding the death, creditors are allotted 4 months to make claims against the estate, all debts should be paid, then property passes to your family. This process takes an average of 8months to 1 year. The probate fees for the attorney assisting you with probate is set by California statute.
How do you put assets into a Revocable Living Trust?
After you have a revocable living trust set up, the next step is to go to your banks and other financial institutions to inform them you wish to change title from your individual name to the name of your revocable living trust. Some institutions may require you to close your existing account and fill out a new account form. Your home will need a new deed prepared and recorded with the County Recorder’s office. Our office is experienced to assist you with every part of this funding process.
How long does it take to set up a Revocable Living Trust?
The average turn-around time is 3-4 weeks. Even sooner if you have an urgent case. Everything is executed in our office to make it as simple and as easy as possible on you and your family.
I have a trust already, but I want to make changes. Do I need a new trust prepared?
No, you should review your trust documents on an annual basis to consider whether there should be any changes. If you do need a change, usually an amendment is sufficient. An amendment will be read in conjunction with your original trust. There would be no changes to the name of your trust or the date of your trust- so assets already funded into your living trust are not affected.