Common Questions And Answers About Wills And California Revocable Living Trusts
At Norton Basu LLP, we know you want to plan so that your loved ones are taken care of and your assets re distributed per your wishes. A living trust is one way to protect your estate. Have more questions? Call us at 408-520-1712 and get straightforward answers.
What Are The Benefits Of A Revocable Living Trust?
There are many benefits to creating a revocable living trust. The biggest benefit is your own peace of mind, knowing that your loved ones are protected and will be taken care of.
- It eliminates the need to later apply for a conservatorship which can be costly and time consuming. Your designated trustee will take care of your affairs including if you become incapacitated.
- It allows you to control how your estate is managed and what happens to your assets after your death. The money in a trust can be distributed in many ways, including on an annual basis to minors or used to pay tuition, for example.
- It eliminates the need for your estate to go through the long and expensive California probate process.
- Trust administration is a private process. This is unlike the California probate process, which is a public process whereby everyone has access who your beneficiaries are and how much they are receiving from your estate.
- A trust can protect your assets from creditors. Depending on how your trust is set up and administered, the holding, oversight and disbursement method can also protect the assets you have set aside for your children or grandchildren from creditors.
How Can A Trust Financially Protect My Children From My Previous Relationship?
A previous partner or spouse and your children can be beneficiaries of a living trust. You can create disbursement plans that allow your children from your previous relationship to inherit immediately upon your death, regardless of whether your spouse is still alive.
What Is A “No-Contest” Clause In A Trust?
When someone creates an estate plan, an heir may think that they did not receive fair treatment and contest the terms of the trust or will. Including a “no-contest” clause in your trust, makes your trust much more difficult to dispute or challenge.
What If Someone Dies Without Leaving A Will?
When someone dies and does not have a will in California it is called dying “intestate.” All of their possessions will be distributed to their blood relatives in accordance with California law. The court will make decisions as to who will raise any minor children.
What Is A Pour-over Will?
A pour-over will is specific type of will that works in tandem with your trust. The pour-over will states that if you die with assets that are not in your trust, you wish those assets to be treated as if they were in your trust. This is vital to “catch” assets that were not titled properly in the name of your trust during your lifetime and posthumously incorporate them into your trust.