Revocable Trust or Living Trust setting up a living trust

A revocable trust, also known as a living trust or intervivos trust, is a legal document that holds and manages an individual's assets during their lifetime and facilitates the seamless transfer of those assets upon their death.  You can think of it as a container.  You put all of your assets, sometimes referred to as "your estate",  into the container of the trust,  and when you pass away, your successor trustee will distribute your assets to the people you want them to go to, other wise know as the beneficiaries.

"What makes up my Estate?"

Your estate consists of the following:

1. Homes, Land and Real Property

2. Personal Property

3. Cash

4. Annuities

5. Life Insurance

6. Pension Plans, IRAs, 401Ks

7. Stocks, Bonds, MF & CDs

8. Business

"Well, I have a Will, do I need a trust?"  

Although a will is a necessary part of any estate plan, in the state of California, it is not considered a legal document and may not avoid the complexities and expense of probate.

"What is probate and why do I want to avoid it?"

Probate is the legal process that your Estate may go though in the event that, say, yesterday, you passed away or something happened to you.  If the gross value of your estate is over $185,000  when you pass away, your estate will go through probate.

Expense- Probate typically costs about 5% of your gross estate.

Time- Probate takes about 1 year to 1 1/2 years to complete.

Privacy-  Probate documents are public so anyone can see what assets are in your estate.

Contestable- Wills are much easier to contest, especially when the assets are public.

Foster Care-  In the case of minor children, a will does not set up guardianship for the children.  They will go into foster care until the court appointed guardian can do a background check on the appropriate person.

"What are the benefits of a Living Trust or Revocable Trust?"

With a Living Trust you are in control.  You decide who will distribute your estate the way you want, known as a successor trustee.  You choose your beneficiaries and exactly who will get what.  You choose the guardians for your minor children so that Child Protective Services is never involved.

Expense-  There is a cost to set up a Trust, but upon your death your assets go to your beneficiaries.

Time-  When you have a Trust, the transfer is almost immediate.

Privacy- Your assets remain completely private.

Contestable-  It is much more difficult to contest a properly set up Trust

Foster Care-  Your children can go directly to the guardians you appoint without the court being involved.

If you own property in California, chances are that your estate is worth more than the probate threshold.  If you would like to know more about setting up your Portfolio of Estate Planning Documents, that include  a Living Trust, or Revocable Trust, Pour-over Will, Advanced Health Care Directive, Financial Power of Attorney and other important elder care documents, call or text me at 858-519-2297 and I can put you in touch with the best person for your situation!

Revocable living trust, setting up a living trust, Notary near me in Solana Beach, Cardiff, Del Mar, Encinitas, Rancho Santa Fe, Fairbanks Ranch.