What are Revocable Living Trusts?
Thousand Oaks Trusts Attorney
In a revocable living trust, the settlor, trustee, and beneficiary are typically the same people. This is because the vast majority of people want the benefits of a trust without giving up either control or benefit of the use of the assets.
A revocable living trust can be terminated, or revoked, at any time prior to the settlor's death. Once the settlor passes, however, the living trust becomes irrevocable. This means that assets can no longer be added or removed, trust provisions cannot be amended, and the trust will proceed as the settlor stated in the trust conditions created prior to the settlor's passing.
When a living revocable trust is established, assets will either be removed from the settlor's estate directly to their heirs or trusts before they pass away. If a settlor has second thoughts in regards to who should be a beneficiary or trustee, or wishes to change the provisions of the trust, they may do so at any point during their life provided they are competent to do so.
Contact a Thousand Oaks estate planning lawyer from Pederson Law Offices if you wish to create a revocable living trust.
Revocable Living Trusts Goals
When you create a revocable living trust, it is best if you transfer as many assets as possible into the trust while you are alive. That way, the items will avoid probate upon your passing. Objects that are placed into a revocable living trust are still under your ownership, which means you may be held accountable for possible estate taxes on items in the trust, and your assets are not protected from creditors' claims.
However, it is beneficial to create a revocable living trust in the event that you become incapacitated. You may nominate a person to manage your trust while you are unable, instead of the court appointing someone on your behalf. As previously stated, all items in a revocable living trust may avoid the probate process. This not only gives you peace of mind, but it will save your family and loved ones time, headache, and money.
Have questions? Call a Ventura County estate planning lawyer!
The objects that are not placed in trust may be subject to the probate process. Property or assets that are jointly owned cannot be placed into a revocable living trust unless you either transfer full ownership to yourself or the other owner, or you split the asset or property into two separate items. Our attorneys at Pederson Law Offices are very experienced and happy to assist clients with establishing a revocable living trust.
If you have any questions regarding a revocable living trust or any other type of trust, call today at (805) 372-1507.