You may hear many terms referencing a living trust, such as an inter vivos trust or a revocable trust. The primary definition of this is that it’s a separate legal entity that you create to own property, such as investments or your home. The term living trust is used because this is meant to help serve you while you’re still alive. You control any property placed inside the trust and are eligible to change the trust terms and the trust or move property in and out of the trust during your lifetime.
Living trusts in California can be used to accomplish numerous purposes, but the biggest function is often to avoid probate. Living trusts are not included in California probate estates, meaning that these aspects of your assets will transfer privately.
Probate takes time and property is not distributed until the process is complete. Probate can also prove problematic for managing property, such as a stock portfolio or a closely held business.
Other benefits of using a living trust for estate planning purposes in California include letting a professional manage your property for you if you decided to appoint someone else in the role of trustee or giving someone else the eligibility to manage your property if you become incapacitated. Probated documents are matters of public record, but a living trust is a private matter that is not entered into probate. By using a living trust you gain more control over the administration of your estate, while also keeping these details out of the matter of public record.
Our Pasadena lawyers can help you with your full estate plan.
