A will may not be the best plan for many people as it does not come into effect until the creator dies, failing to provide any protection if the person becomes physically or mentally incapacitated. In many cases, a living trust can be a better alternative to trust.
A living trust is created during the estate planning process. The legal document allows the creator to make important decisions regarding their assets, even if they become incapacitated. Unlike trusts that are irrevocable in most cases, living trusts are usually revocable, meaning the maker can change the terms of the agreement while they are still alive.
Benefits of a Living Trust
A significant benefit of a living trust is that it avoids probate. Probate is the judicial process through which courts determine a deceased person’s assets and liabilities. The assets and property of the person are used to pay off their debts. Any amount that is left after the probate process is divided among the beneficiaries and heirs.
You may be wondering what’s so bad about probate? First things first, it costs a lot of money and takes time (usually 9months-2 years). Additionally, the deceased person’s family has no privacy as probate is a public process. Living trusts address these issues.
Steps to Creating a Living Trust
A living trust must contain the following information:
- Full legal name of the creator
- Full legal name of the trustee (the person appointed by the maker to manage the trust)
- Full legal name of the person appointed by the maker to take over the trust if the original trustee passes away or becomes physically or mentally incapacitated and is no longer able to manage the trust
- Full legal names of the beneficiaries. If a person wants to leave their assets to a minor beneficiary, they must mention the full legal name of the minor as well as the adult who will manage the trust on their behalf
After creating your living will document, have it signed by a notary. Once this is done, all your assets and properties (listed in the trust) will be transferred to the trust. All important documents related to your finances must include the trustee’s name.
Why Hiring a Living Trust Attorney Makes Sense
There are more benefits of hiring a living trust attorney than you could imagine. An experienced living trust attorney will check your documents and rectify errors to ensure it is valid. Your attorney will carefully analyze the language and make sure all your instructions are fully explicit, leaving no room for misinterpretation.
A trained and experienced attorney will walk you through the entire process and answer all your questions related to laws on trust administration in Santa Rosa.
Want to set up a trust but do not know how to proceed? Let Johnston Thomas Law help. We are a team of seasoned and professional attorneys. We specialize in real estate law, business law, and estate planning. No matter how complex your case, we are confident of crafting a cost-effective legal solution that ticks all the right boxes. To fix an appointment, call us at 707-545-6542.