Revocable living trusts are helpful tools to ensure that your assets are given to the beneficiaries of your choice. Having an RLT in place before you pass away can also reduce the chances that your estate will go to probate. While some of your assets should be placed in your trust, other assets are not permitted to be part of your trust. If you live in California, here are some important considerations about trusts that will help you plan your estate.
Misconceptions about creating a will
Many people think that having a will means that their assets will be transferred to their heirs quickly. However, your assets will go through probate when you pass away whether you have a will or not. The process is less complicated when trusts are in place.
Benefits of an RLT
Revocable living trusts are designed to protect your assets throughout your life. The trust also creates a means for passing your assets to your beneficiaries. When you have an RLT, your family members can avoid probate. You’ll have the peace of mind of knowing that your property and valuables will go to the people you have designated.
However, it is important to keep in mind that you likely won’t be able to avoid probate completely. Your valuable assets can be part of your trust, but there are some assets you won’t be able to add to the trust. Those assets will have to go through probate, but the overall process will still be easier on your loved ones if you have a trust.
Trusts also allow you to have a degree of privacy regarding your estate. This could come in handy if you become incapacitated after creating the trust. Proper funding and establishing the trust at the right time will increase the chances that your trust will perform according to your wishes.