Do I Need a Revocable Living Trust?
When drafted correctly and funded, a revocable living trust is a beneficial tool that will allow you to remain in control of your real and personal property during your life, provide for their management during incapacity, and transfer them according to your wishes after you have passed away or at any other point of your choosing. If you are considering creating an estate plan, contact our Sacramento revocable living trust attorney.
Often referred to as a living trust, a revocable living trust holds legal title to the assets of the grantor and provides a set of rules in their management. The grantor(s) serve as the trustee(s) and beneficiary of the trust during the life of the grantor(s). When you create a trust, you will nominate successor trustee(s) to act in accordance with the terms of the trust including management in case of incapacity or death.
For your trust to be legally enforceable, you will need to transfer the title of most of your assets to your revocable living trust while you are still living. This may include executing a grand deed to your home and filing it with the County Recorder’s Office in the county in which your home is located. The “revocable” part of a living trust means that the creator can make changes and even terminate it at any time. Our Sacramento revocable living trust attorney can guide you through funding your trust.
What advantages are there to having a revocable living trust?
Like a last will and testament, a trust is a legally enforceable document that dictates how your assets will be managed and distributed after you pass away. A trust, however, has certain and specific advantages compared to a will. With a living trust, your assets can be immediately transferred after you die and without the need for court supervision or interference. In case of incapacity, a will does not provide for management of our assets. A living trust can accomplish this without the need for a court-ordered conservatorship. When a trust is created and funded properly, there will not be a need to go through the expensive and lengthy probate process. Most importantly, a living trust gives your loved ones the ability to manage and distribute your property privately and efficiently.
Do I lose control over my property by creating a trust?
When you create a revocable living trust and transfer your assets to your trust it will not affect your ability to control those assets unless you intend to relinquish control. While you are alive and mentally competent, you have the right to complete control over your assets. After you create a revocable living trust you will still have complete control over your assets. There will be no changes that need to be made when preparing your federal and state income taxes. If you have always filed a 1040 before you created a trust, you can continue to file a 1040 unless other circumstances arise that require you to file differently. You will be able to modify your living trust at any time or you can revoke it if you so desire. If you become incapacitated, individuals of your choosing will be vested with the authority to manage trust assets on your behalf provided they follow the instructions you have written out in the trust. After you pass away, the trust becomes irrevocable and your successor trustee(s) will administer your trust as directed.
What assets will I have to transfer to my trust?
Any assets you have with beneficiary designations such as an annuity or life insurance policy with a named beneficiary do not have to be transferred to your revocable living trust. Most retirement accounts automatically transfer to named beneficiaries without the need for probate. Some bank accounts may not need to be transferred to your trust. This is the case with joint accounts and transfer on death accounts. It is important to seek the advice and counsel of a Sacramento estate planning attorney experienced in funding trusts
Types of Trusts
- Living Trusts
- Asset Protection Trusts
- Special Needs Trusts
- Medical Asset Protection Trusts
- Testamentary Trusts
Call Us to Speak With a Sacramento Revocable Living Trust Attorney
We understand it is difficult to think about what will happen to your belongings after you pass away. We definitely appreciate it and have to think about it ourselves. When you hire the Law Office of Justin Anton McCrea, you get an attorney experienced in estate planning and the unique needs of individuals. Call our office at 916-601-9441 to speak with a Sacramento revocable living trust attorney or contact us online.