A revocable living trust is one of many tools that may allow you to meet your estate planning goals. One of the primary benefits of this tool is that you may be able to shield assets from being seized in a divorce or by a creditor. Furthermore, it allows you to appoint someone to manage assets such as a California home if you ever become incapacitated.
You can be the trustee and beneficiary
Perhaps the best reason to create a revocable living trust is that you get to retain complete control over the assets inside of it. This is because you are allowed to be a trustee and beneficiary at the same time. In other words, you get to make decisions about whether to sell, gift or transfer an item whenever it suits you to do so. In addition, serving in these dual roles means that you can change the terms of the document whenever you want, assuming that you are of sound mind.
Assets in the trust will likely avoid probate
After you die, any property that is held inside of your estate will be subject to probate. This is a public proceeding that may take several months to complete. A probate proceeding is designed to determine whether assets should be distributed to beneficiaries per the terms of your will. If you don’t have a valid will, your belongings will be distributed as directed by state law. By creating a trust, you can keep property outside of your estate and bypass probate.
Creating a revocable living trust may make it easier to manage your affairs before and after your death. It may be worth reviewing this document on a regular basis to ensure that it’s properly funded and structured in accordance with state law.