When creating a living trust in California, it’s recommended to work with a Pasadena estate planning attorney. The creation of a trust can bolster existing estate plans such as a will or beneficiary designations filed with places like your life insurance policy. However, because trusts can be complicated and because there are many different types of trusts, it’s worthwhile to identify an estate planning law firm who can help guide you through the process of selecting the right strategy and choosing which assets belong in the trust.
Begin by taking stock of all of your assets. Make a list of all financial and physical property. Three of the most common types of assets put inside living trusts in California include real estate, brokerage and bank accounts, and any other valuable assets such as artwork or expensive jewelry.Â
There are certain kinds of assets, however, that frequently don’t make sense for a living trust. This includes non-probate assets such as retirement accounts. If your beneficiaries have been appropriately named, those assets will pass to your beneficiaries without going through probate, so they do not belong in a trust.
The second category of assets that doesn’t belong in your living trust include vehicles such as boats, cars and campers. Although you can place these inside a living trust, they quickly depreciate in value and people often buy and sell them frequently, which can be a hassle to track or ensure they are properly funded. Contact our Pasadena law firm to learn more about estate planning and how to craft your own plan.
