Living Trusts Attorneys Southern California

1. WHAT IS A LIVING TRUST?: A living trust is a written legal document that substitutes, in some regards, for a will, usually prepared by living trusts attorneys southern California. With a living trust, your assets and possessions (home, stocks, cars for example) are put into the trust, administered for your benefit during your lifetime, and then transferred to your beneficiaries when you die as determined by you and your living trust lawyers California.

Most people, through their living trusts lawyers Southern California, name themselves as the "trustee" in charge of managing their trust's assets. This way, even though your assets have been put into the trust, you can remain in control of your assets during your lifetime. You and your living trusts lawyer can also name a successor trustee (a person or an institution) who will manage the trust's assets if you ever become unable or unwilling to do so yourself.

The living trust described herein is a revocable living trust (sometimes referred to as a revocable inter vivos trust or a grantor trust) by living trusts attorneys Southern California. Such a trust may be amended or revoked (cancelled) at any time (and for any reason) by the person or persons who created it (commonly known as the trustor(s), grantor(s) or settlor(s)) as long as he, she, or they are still competent, this is often a minimal change to make for your living trust lawyers California, and it is one of the great advantages of revocable trusts.

YOUR LIVING TRUST AGREEMENT, AS PREPARED BY YOUR LIVING TRUSTS LAWYERS SOUTHERN CALIFORNIA:

• Gives the trustee the legal right to manage and control assets and possessions held in your trust.
• Instructs the trustee to manage the trust's assets for your benefit during your lifetime, as drafted by your living trusts lawyer.
• Names the beneficiaries (individuals or charitable organizations) who are to receive your trust's assets and possessions when you die.
• Gives guidance and certain important powers to the trustee to manage and distribute your trust's assets. The trustee is a fiduciary (and therefore has a fiduciary duty), which means he or she holds a position of absolute trust and confidence and is subject to strict responsibilities and very high standards. For example, the trustee cannot use your trust's assets for his or her own personal use (of course) or benefit without your explicit permission. Instead, the trustee must hold and use trust assets solely for the benefit of the trust's beneficiaries, this can be further explained by your living trusts attorneys Southern California.

A living trust can be an important part-and in many cases, the most important part-of your estate plan and it is critical to work with professional living trust lawyers California such as McFarlin & Geurts, LLP to ensure you receive the best quality legal work to protect your important assets and effectuate your wishes precisely.

2. WHAT CAN A REVOCABLE LIVING TRUST DO FOR ME? Working with living trusts lawyers southern California, a revocable living trust can help ensure that your assets will be managed according to your wishes-even if you become unable to manage them yourself.

In setting up your living trust through a living trusts lawyer, you may serve as its trustee initially or you may choose someone else to do so. You can name a trustee to take over the trust's management (successor trustee) for your benefit if you ever become unable or unwilling to manage it yourself. This is something qualified living trusts attorneys Southern California can assist you with. And at your death, the trustee-similar to the executor of a will-would then gather your assets, pay any debts, claims and taxes, and distribute your assets according to your instructions. Unlike a will, however, this can all be done without court supervision or approval. Avoiding court supervision is a huge benefit because going through the probate process can be very expensive, and take up to two years, if not longer, experienced living trust lawyers California can assist you with this process.

3. SHOULD EVERYONE HAVE A REVOCABLE LIVING TRUST?: No, not necessarily. Young married couples without much in the way of assets and without children, who intend to leave their assets to each other when the first one of them dies do not need a living trust and would not benefit from having a living trust, of course this can be full explained by living trusts lawyers southern California for your benefit. Other persons who do not have significant assets and have very simple estate plans also typically do not need a living trust. Finally, anyone who wants court supervision over the administration of his or her estate should not have a living trust. The greater the value of your assets (particularly if you own real estate), the greater the need for a living trust, and the greater the need for a qualified living trusts lawyer. Of course, having a living trust could be important in the event of an accident or sudden illness this is certainly qualified living trusts attorneys Southern California can assist with.

4. HOW COULD A LIVING TRUST BE HELPFUL IF I BECOME INCAPACITATED?: If you are the trustee of your own living trust and you become incapacitated (as is common), your chosen successor trustee (often your living trusts attorneys Southern California ) would be charged with management of the trust's assets for you. If your assets and possessions were not in a living trust, however, someone else would have to manage them, this person can also be living trust lawyers California. How this would be accomplished might depend on whether your assets were separate or community property.

If you are married or part of a registered domestic partnership, assets acquired by either you or your spouse (or domestic partner) while married or in the partnership and while a resident of California are community property. (Note: In domestic partnerships, earned income is not treated as community property for income tax purposes.) This topic, if applicable, should be part of your initial consultation with your living trusts lawyers Southern California.

On the other hand, any property that you owned before your marriage or registration of your partnership, or that you received as a gift or inheritance during the marriage or partnership, would probably be your separate property, this can have an impact on your revocable living trust and should be discussed with your living trusts lawyer.

In California, community property could be managed by your spouse or registered domestic partner if he or she is competent, of course, if you are apprehensive about the management abilities of such a designee, living trusts attorneys Southern California may be able to provide such fiduciary services. If you own separate property (or are not married or in a registered domestic partnership) and you become incapacitated, such assets could be managed by an agent or attorney-in-fact under a power of attorney; without planning, however, your separate property assets would be subject to a probate court proceeding called a conservatorship. This is basically the worst case scenario, but qualified living trust lawyers California can help you avoid this pitfall.

During the conservatorship process, a judge could determine that you were unable to manage your own finances or to resist fraud or undue influence. Accordingly, the court would then appoint someone (a conservator) to manage assets for you. The conservator would report back to the court on a regular basis pursuant to the court's wishes.

Your conservator might be someone whom you previously nominated. Or, if no one had been nominated, it might be your spouse, registered domestic partner or another family member, or even living trusts lawyers Southern California. If none of those persons are available, then it might be the public guardian appointed by the court.

Conservatorship proceedings are designed to protect you at a time when you are vulnerable or incapable of managing your assets due to illness or other issues. However, they are also public in nature and can be costly because of the substantial court intervention, and corresponding living trusts lawyer attorney fees. In addition, conservatorship proceedings may be less flexible in managing real estate or other interests than a well-managed revocable living trust.