How To Create Revocable Living Trusts In California

Updated: Sep 8

Revocable Living Trust: How They Work And Why You'd Need Them

Revocable trusts, also known as living trusts, are an excellent choice for people who want to leave an inheritance to their heirs after their passing. A living trust, in contrast to an irrevocable one, can be modified while the beneficiary is still alive.

So, how does it affect you, your finances, and your beneficiaries? First, let's look at what our prescreened Living Trust Lawyers in Los Angeles often do and advise clients on revocable trusts:

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What Is A Living Trust In California?

A living trust is a legal arrangement made while the trustor is still alive to manage the trustor's assets. The trustor appoints a person as trustee, and it is that person's job to oversee the trust's assets. A Los Angeles living trust attorney will often oversee the creation of the crucial documents related to the trust.

Revocable means a living trust can be changed while the trustor is still alive. It becomes irrevocable after the trustor passes away, meaning it cannot be modified beyond that point.

How Do You Set Up A Living Trust In California?

Creating a living trust is essentially identifying trustees, beneficiaries, and properties and then putting all your wishes into paper. However, before doing that, you'll have to make several decisions before putting them down on a legal document.

Let's look at the steps you need to take to create a living trust that's right for you:

  • Make a list of your assets, including material and immaterial possessions like coins, gold, jewelry, real estate, and bank accounts.

  • Select a trustee

  • Select your beneficiaries

  • Make a Trust Declaration with a California trust lawyer

  • In the presence of a notary public, sign your trust agreement.

  • Transfer your assets to the trust

Remember, one of the most crucial reasons for using a revocable trust is that you'll be able to change whatever's in the document while you're alive. So, if you change your mind for any reason, you can just run it with your Los Angeles living trust lawyer.

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Living Trust Vs. Will In California

The usual method for allocating property following a death in the United States is through a will. When a trust is part of an estate plan, the settlor typically simultaneously drafts a will. This will is known as a "pour-over will" because, upon the settlor's passing, it collects any assets not already in the trust or otherwise transmitted on death. The will "pours over" those assets into the trust in this kind of inheritance plan. The trust specifies how assets will be distributed after the settlor's passing.

A will expresses the deceased person's preferences to the probate court and the executor that the testator names in the will, in contrast to a trust, which provides instructions to a trustee.

A will can be used for various purposes, such as naming executors, choosing beneficiaries to inherit property from, naming a guardian to look after minors, and specifying burial, cremation, or other memorial observance instructions. Even though they delegate the responsibility for the primary method of asset distribution to the trust trustee, pour-over wills accomplish many of these goals.

Even the creation of a trust with specific instructions for asset management over time might be mandated by a will to the executor. In contrast, a freestanding trust frequently does not require judicial review. However, if the will controls or distributes any sizeable sum of money or property, it would likely require interpretation and approval from a judge in a court probate case.

If unsure about what's right for you, you can consult with a prescreened Living Trust Lawyer in Los Angeles. They can help you with California trust requirements, guide you through creating one, explain living trust California costs, and so on.

The Importance Of Setting Up California Living Trusts

The estate planning process may benefit from using a living trust. It can be desirable to establish a living trust to make changes as necessary as you move through life, even if it may take some time and careful planning.

In California, one advantage of having a living trust is that you typically avoid going through the probate process. In addition, it saves time and effort and increases the likelihood that beneficiaries specified would get their inheritance sooner. Lastly, a living trust might offer relief once the trustor dies because property and assets are managed in advance.

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