Updated: Jun 5, 2021
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A California Living Trust is a legal document that replaces the Last Will and Testament as most people know it. In other words, a living trust ensures that the assets are distributed to the people you specify. In practice, a Trustor (the person who maintains the Trust) signs a document called a Declaration of Trust, usually appointing himself or herself as Trustee of that Trust.
The Trustor, therefore, transfers his or her properties to the Trust at the same time. The act of transferring assets into a trust is referred to as funding the Trust. When adequately funded, a California revocable living trust will help an estate escape probate. A living trust often prevents the second probate for your spouse or wife when he or she dies, as well as probates in other states where you own land.
Living trusts (when correctly drafted) help people secure asset security for their loved ones while maintaining a seamless transfer of assets from you to the next generation, in addition to avoiding a California probate. Furthermore, transfers to your children can be structured in such a way that they receive health care, schooling, welfare, and maintenance after you pass away, without having the potential to misuse family properties.
Most people, for example, fear the prospect of their children squandering inherited funds in Vegas, on a new Ferrari, or in some other wasteful way. In reality, many parents choose to set up a California living trust that gives their children the majority of the family estate until they reach a certain age, such as 30.
What Is Probate and How Does It Work?
Probate is the mechanism by which the court:
In California, you can transfer or inherit the land.
Determining the legitimacy of a will
Resolving the deceased's unpaid debts
Your property consists of your house, bank accounts, automobiles, and