What Is A Living Trust?
First, it is important to understand what a Living Trust is. A living trust is a legal instrument, a legal document that allows you to direct what assets are inherited by whom after your death. The living trust ensures that you retain possession of said assets until after you have passed on.
Without A Living Trust
For those families that do not prepare for their passing, it can be an uphill battle trying to ascertain who will gain possession of any physical or monetary assets. They will have to endure the process of going through probate which is complicated, can be lengthy and heartbreaking to deal with after experiencing the loss of their loved one.
The Benefit of A Living Trust
The most important benefit of a living trust is that your loved ones will not have to continually deal with paperwork, attorneys and the court system. The last thing that your family should have to deal with after you have passed on is paperwork, property, and numbers. In addition, in the event that there is conflict between family or friends, a Living Trust will clearly state your intentions and ensure that your directives and wishes are followed and respected.
The first step is to contact an experienced Family Law Attorney who has experience with Family Trusts in California. The attorney can then walk you through the process. Here are some of the steps your attorney will help you with.
- Choosing which type of trust is best.
- Creating a list of assets that include financial accounts and/or property that you may want to include.
- Deciding what items on your list you would like to include in the Living Trust.
- Choosing which family member or friend will become your Trustee.
- Choosing who your beneficiaries will be.
- Drawing up the actual Living Trust document and executing (signing) the trust documents.
- Updating the titles to any properties,i.e., motor vehicles, residential properties, commercial properties to the name of the trust.