California Revocable Trust Attorneys

Keeping Your Assets Under Your Control With a Revocable Trust

A trust dictates exactly how an individual’s property will be managed, allocated, and distributed throughout his or her lifetime or upon death. A “living” trust entails that an individual created the trust while he or she was still alive. The trust is designated as “revocable” in that the trust creator reserves the right to make changes to, amend, or even revoke the trust during his or her lifetime. A Revocable Living Trust eliminates challenges to the trust. A standard will may cause family disputes after your passing and may be challenged for modification by any member of your family.

By utilizing a trust, you can particularly disinherit any individual who posts a challenge to your desires upon your demise. If you would like to establish a Revocable Living Trust, it is very important to secure the advice and guidance of a California revocable trust attorney. A knowledgeable attorney will help you determine the best terms of your trust agreement and ensure that your Revocable Living Trust follows state and federal guidelines.

Know Your Options with a Lawyer Serving the Fremont and Bay Area

When it comes to estate planning, trust is but one option. What works for one family may not work for yours. Speaking with an experienced California revocable living trust attorney is the best way to ensure that your estate planning benefits you and your family members as much as possible!

What is a Revocable Living Trust?

We’ve already touched on this lightly, but a revocable living trust is a legal document that allows you to transfer assets into a trust during your lifetime. Because the trust is revocable, you can make changes to it, change the terms of distribution of the assets held in it, remove and add beneficiaries, and ultimately revoke the trust if you so choose.

An irrevocable trust has strict guidelines surrounding it once it is created and assets are transferred into its possession. For example, some irrevocable trusts require all beneficiaries to agree and sign before the trust can be revoked. If even one beneficiary refuses, then changing the trust can be nearly impossible.

There are three key parties involved with the creation of a trust.

The trustmaker is the person who creates the trust. They are also called the trustor or grantor.

The trustor assigns someone to manage and administer the assets within the trust. This person is called the trustee. As the trustor, you can assign more than one trustee, and you should think about a successor trustee, just in case the primary trustee is no longer able to manage the trust.

With a living trust, you can appoint yourself as the trustee, making important decisions regarding the administration of the assets in your trust. This allows you to benefit from the assets while still planning your estate.

When creating your trust, you will choose the people who will receive assets from the trust. These people are called the beneficiaries of the trust.

Your trust should be robust. You will need to define how assets are distributed from the trust. You can set certain stipulations, such as whether or not emergency funds can be administered from the trust for things like medical expenses.

What Are the Benefits of a Revocable Living Trust

A revocable living trust is an effective tool as you start your estate planning process. This is particularly helpful for individuals who are beginning to plan their estate and are not yet confident about who exactly to name as beneficiaries. There are a few reasons you may wish to go with a revocable living trust.

A Revocable Living Trust is Flexible

One of the main advantages of a revocable living trust is that it gives the creator the ability to undo or alter the terms of the trust. A number of circumstances may arise that call for a change to be made to the trust agreement. A marriage, divorce, illness, death, or even a simple change of mind can necessitate an amendment to the trust. A revocable trust can be utilized to control a guardian’s spending habits for the benefit of your minor children. You can restrict the number of withdrawals to income only, with special emergency provisions if you want.

Revocable Living Trusts Avoid Probate

If you have a will when you pass, your assets will go through probate. This is a court proceeding where your assets are distributed per your conditions. Probate court is a relatively slow procedure that can take several months.

By establishing a revocable trust, you can also avoid the complicated and lengthy probate administration process and the fees and expenses that usually accompany this process. Your successor trustee will certainly pass your assets on to your beneficiaries without the need to wait for a court order. That generally implies a quick and reasonable process for your beneficiaries.

A Revocable Living Trust Provides Privacy

Revocable trusts are a smart decision for those worried about keeping records and information about their assets private, especially after your passing. The probate procedure that wills are subjected to can make your estate an open book since documents entered into it become public records accessible to anyone.

Are There Any Cons to a Revocable Trust?

A revocable living trust may seem like the obvious choice for you because it allows you to plan for your family’s future and continue to benefit from the assets being managed by the trust.

The primary drawback of a revocable trust is that it does not offer some of the same benefits that can be found in a much stricter, irrevocable trust. While a revocable trust offers a level of privacy, it does not offer any form of asset protection.

A revocable trust also doesn’t offer any form of tax benefits.

This means that if you are looking to form a trust that will protect a portion of your assets, or you would like to form a trust in order to lessen the impact of estate taxes on your estate when it passes to your heirs, you will need to implement an irrevocable trust designed to help with those things.

The good news is you can form more than one trust. You can create a living trust that benefits you while you are alive and then benefits your family after you die, and you can form one or more irrevocable trusts to help lessen the impact of estate taxes or to protect assets from creditors.

What Happens If The Trustmaker Becomes Mentally Incapacitated?

The trust agreement also specifies what happens if the trustmaker becomes mentally incapacitated and can never again deal with their affairs and those of the trust. The trust documents should name a “successor trustee,” someone to step in and assume control over the management of the trust if the trustmaker is determined to be mentally incapacitated. The successor trustee can then deal with the trustmaker’s finances and the assets that have been set in the trust.

When Does a Revocable Living Trust Become Irrevocable?

A revocable trust automatically becomes irrevocable when the trustmaker dies since they can never again make changes to it. The named successor trustee steps in now as well, paying the trustmaker’s last bills, debts, and taxes, similarly as he would if the trustmaker became incapacitated. In the case of death, however, they would then distribute the rest of the assets to the trust’s beneficiaries as indicated by directions incorporated in the trust’s formation documents.

Can You Have a Will and a Living Trust?

Having both a will as well as a living trust is a great idea that allows you to control multiple facets of estate planning. You can use a living trust to help ensure your family has access to those assets faster than assets defined in your will that must clear the probate court system.

You can also opt for a pour-over will. A pour-over will allows you to direct that any remaining assets not already included in a trust be poured over into a trust upon your death. A pour-over will is a great way to take care of loose ends that may not have been put into a trust.

When you have both a will and one or more trusts, there are a few things to keep in mind.

A will only takes effect after you die. Unlike a living trust, your will will have very little, if any, impact on your life.

A trust manages the property within it, even while you are alive. A will does nothing except outline the assets you would like to be distributed via your executor and how you would like them distributed. A trust outlines how you would like the assets managed while you are alive and distributed once you pass away.

You should not include items and assets that are being managed by a trust in your will.

How Often Should You Revisit Your Estate Plans?

While it can feel like a major relief to finally finish planning your estate, it is imperative to remember that the documents that are part of your estate plan are living things that may require you to monitor them and implement changes when necessary.

When major things in your life change, you may want to speak with your attorney about updating your documents. If you get divorced or remarry, you will likely want to update your will and any trusts. If you lose a child, you will need to update the beneficiaries and distribute your assets, which are being managed by a living trust and your will.

The same is true when laws and regulations change, as they may have an impact on your plan. Having a CA revocable living trust attorney who understands both the laws and regulations that govern estate planning, as well as one who understands you and your family, can make the process infinitely easier.

At The Singh Law Firm, we don’t see you as our only client. We know your family is at the forefront of estate planning, so we make you and your family our clients. We can help you from the beginning of the process and help your family after you are gone.

Ready to Consult a Revocable Trust Attorney?

When it comes to creating and maintaining a revocable living trust, you need an attorney with knowledge, skill, and experience to guide you through every step of the trust creation process. At the Singh Law Firm, our attorneys have extensive backgrounds in business, accounting, and tax laws. We have helped over 1,000 clients successfully establish comprehensive revocable trusts. A trust of this nature should be established as early as possible. Our attorneys are here to help; give our firm a call today. Our revocable living trust lawyers will assist you in creating an effective plan based on your assets, tax burden, and financial situation.