People have many options when they begin to set up their estate plan in California. One of these is a revocable living trust.
According to the American Bar Association, a revocable living trust is an estate plan in place during your lifetime. You usually need a trustee who will ensure your property is distributed according to your wishes. This person can also oversee your trust if you are unable to because of health reasons. One of the benefits of this kind of estate plan is that you can change it as circumstances arise, and you can also use it to supervise your property. While your estate may not need to go to a probate court if you establish a trust, it is generally still subject to estate taxes.
One of the benefits of establishing a revocable trust is that your beneficiaries can typically access your estate sooner. The Huffington Post says that most estates need to go through probate before the assets are handed out. If you establish a trust, though, it is your trustee who gives your assets to your beneficiaries. Sometimes in order for assets like your investments and your home to be included in your trust, you must re-title them.
As you establish your trust, it is a good idea to think about the people who will be receiving your assets. If you plan to leave money or property to your children, it is important to think about who will manage these assets if you die while your children are still minors. Additionally, if you want a specific person to inherit your house, you typically need to make sure this is laid out in the trust.