Most people believe that simply drafting a will is enough to protect their estate and their loved ones when they are gone. Yet, a solid estate plan involves more than just drafting a Last Will and Testament. One of the most overlooked and often misunderstood components of an estate plan is a revocable living trust. In fact, for some people, establishing a living trust is critical.
What is a Revocable Living Trust?
A living trust is also known as a revocable living trust. It is a part of an estate plan that can help you manage your assets after you are gone. It can also protect you if you become disabled, ill, or incapacitated.
Most living trusts allow you to amend or revoke them at any point. A living trust has the ability to address concerns and issues a will cannot. As such, they are beneficial for many different types of people. Even if you do not own a large estate, you should consider the benefits of a living trust.
Top Five Reasons You Need a Revocable Living Trust
Here are the top five reasons you should talk to your attorney about establishing a revocable living trust.
- Avoid Probate. Probate is the court-supervised process of transferring assets to beneficiaries after death. A revocable living trust does not require probate because the trust owns the assets, and the trust did not die. In this way, your estate can pass along to your loved ones without the need for lengthy and complicated probate. Even married couples who own property together need to put the house into a trust. A house that is not in a trust will go through the probate process. This can take time and cause headaches for already grieving loved ones.
- Protect Assets for Children. When you have children, a revocable living trust can help protect their assets. You can place assets into a trust for your children. You can even state an age where the child will assume control of their assets. This keeps your children's assets safe from creditors or lawsuits once you are gone.
- Asset Protection for Spouse. With a revocable living trust, you can create a “Bypass” trust to protect assets for your spouse. This keeps the assets safe for your spouse and away from predators or unscrupulous family members. It is typically created as part of an A/B Living Trust estate plan.
- Ability to Nominate a Trustee. If you find yourself incapacitated, a revocable living trust allows you to nominate a Trustee to take care of your financial affairs. This can occur privately without court interference.
- Protecting Your Privacy. A will becomes public record upon death. Anyone can see the contents of the will, and the estate passed to heirs. Your revocable living trust is private. No one, other than your heirs, can see the contents of the trust. By keeping your estate private, your loved ones can avoid potential legal battles or public scrutiny.
Contact Our California Living Trust Attorneys
Trusts can safely protect your assets after you are gone. They are an important part of an estate plan and one that has many benefits. To determine if a revocable living trust is right for you, it is important to speak to an experienced California living trust attorney.
Contact the California living trust attorneys at Davidson Estate Law at (510) 527-6774 or fill out our confidential contact form. Our main office is located in Oakland, but we also have offices in Berkeley, San Francisco, Walnut Creek, San Jose, and San Mateo to better serve you.