Living Trusts Suze Orman

DIFFERENCE BETWEEN WILLS AND LIVING TRUSTS: Both Wills and Living Trusts are devices or private contracts which you can use to provide for the distribution of your assets and possessions (your estate) upon your death. Deciding whether a Will or a Living Trust best fits your needs depends on your individual circumstances and lifestyle. A living Trust is a popular alternative to the traditional Will, but you should weigh the advantages and disadvantages of each before deciding on one form or the other.

WHAT PURPOSE IS THERE FOR A WILL?: A Will (as distinguished from a living trust) is the legal document that allows you to distribute your property to those heirs and loved ones you choose, rather than by a state statute. A Will allows you to designate certain beneficiaries to receive certain items from your estate, and other beneficiaries to receive other items. For example, if you want your real estate, your stocks, or your antique figurine collection to go to a certain niece or organization, you designate that person or organization as the "beneficiary". Without a will, California Law will determine who gets your possessions and assets.

The person charged with the duty to carry out your wishes and ensure your possessions and assets get to their intended beneficiaries is the executor of your will. The executor is the person you designate (usually a loved one or trusted advisor, like an attorney) to carry out your wishes.

A Will also allows parents of minor children the opportunity to designate a guardian to care for their children if they pass. Without such a designation, again, California Law will determine who gets custody of the children (usually the "most related" blood relative). The court ultimately makes the final decision when appointing a guardian for your children after your death, but the court will usually accept your nomination or designation so long as that person is competent to care for a child (not in prison, etc.). A guardian's legal responsibility is to provide for your child's physical welfare.

WHAT PURPOSE IS THERE FOR A LIVING TRUST AND LIVING TRUSTS IN GENERAL?: Difference between wills and living trusts: A Will comes into play only after you die, but living trusts can actually start benefiting you while you are still alive. Living trusts are established during your lifetime usually by living trusts attorneys California. If the living trust is Revocable, it allows for you to make changes. Typically, you transfer substantially all of your assets and property into your living trust or living trusts during your lifetime, and any omitted assets can be transferred into the living trust at the time of death through the use of a simple "Pour-over Will" under the direction of your living trusts attorneys California. You should always make a Pour-over Will at the time that you establish your living trust.

Living Trusts can be used as the mechanism to manage your property and assets before and after your (unfortunately inevitable) death, as well as direct how those assets, and the income earned by the trust, are disbursed upon your death. If you should become incapacitated or disabled, the living trust is in place to manage your financial affairs, usually by a successor trustee or living trusts attorneys California, if you were serving as trustee. The biggest benefit of living trusts, in most people's opinion, is avoiding probate. Living trusts are not subject to probate, and therefore, all provisions of the living trust will remain private as long as it is set up properly by living trusts attorneys California. This is another difference between wills and living trusts.

Joint living trusts are also commonly set up by living trusts attorneys California, and for good reason. They combine the assets of a husband and wife into a single living trust, governed by a single trust document and usually a single trustee. However, if estate tax minimization is important (for combined estates which will exceed $625,000), the joint living trust must be very carefully drafted with the help of living trusts attorneys California in order to achieve the desired goals. This is an important difference between wills and living trusts.

WHAT HAPPENS IF I DON'T HAVE A WILL OR LIVING TRUST?: The legal term for dying without a Will is called dying "intestate". If you do not specify through a valid Will or Living Trust who will receive your property, California state law controls and generally distributes your property to your most related "blood" heirs. This may or may not be what you would have wanted. Furthermore, if you fail to nominate or designate a guardian, through a will or living trust, for your minor children, the state will appoint someone and it may not be who you desire as the legal guardian of your minor children. Sometimes your closest living blood relative is not your first choice to care for your minor children. Finally, by failing to designate someone to effectuate your wishes, the state can appoint anyone to be the administrator (in charge) of your property, and the administrator may have to pay costly fees at the expense of your estate (depleting your estate), before he or she can even begin to distribute your assets. Living Trusts prepared by living trusts attorneys California can help avoid these common problems.

A Revocable Living Trust, also known simply as a living trust, is a modern substitute for a traditional Will, usually prepared by living trusts attorneys California.Like a Will, the purpose of Living Trusts is to distribute your assets and possessions at death. Wills are no longer desirable, because a traditional Will puts your estate into probate court at death. The Probate process is costly (3-10% of the gross value of the estate), and quite time-consuming (1-2 years on average), as well as frustrating for your heirs, living trusts prepared by living trusts attorneys California are clearly a much better, faster, and typically cheaper option. For more information about a Revocable Living Trust please call McFarlin & Geurts, LLP for your free consultation with our living trusts attorneys California.

A Living Trust, prepared properly by living trusts attorneys California, and properly funded, will avoid the probate process, its time waste, and its cost. With Living Trusts, your estate will be distributed to your loved ones with minimal expense, and, usually, in just a few months!

In a Living Trust, you are the Living Trust Truster (person who sets up the Living Trust), typically the Living Trusts Trustee (person who manages the Living Trust). For typical living trusts, you also name the Beneficiary (person who gets the assets from the Living Trust) usually with the help of living trusts attorneys California. The beneficiary can be anyone, it does not have to be a relative. As Trustor of the revocable living trust, you, and only you, can make changes to the Living Trust, via Amendment, or cancel the Living Trust, by revoking it again usually with the assistance of living trusts attorneys California. As the Living Trust Trustor, you have complete control over the terms of the Living Trust.

As the Living Trust Trustee, you manage your estate (assets and possessions), much as you do now. You can buy, sell, invest, bank, and give assets out of the trust, however you wish. In the Living Trust, you and your living trusts attorneys California will name Successor Trustees, who will take over management of the Trust when you are deceased, or incapacitated. Frequently the successor living trust trustee is a family member or trusted advisor such as your living trusts attorneys California.

SUZE ORMAN LIVING TRUSTS: Wills and Living Trusts have been around a while, but Living Trusts have recently gained special notoriety in the media on consumer oriented shows such as the Suze Orman programs. Suze Orman advocates the use of Living Trusts (at least in the episodes I've seen) and for good reason. Living Trusts can have great benefit when assets are present and preservation of assets is a priority. Obviously, during a television episode of the Suze Orman show, or similar Suze Orman type programs it's difficult to digest all the information about living trusts, so we've attempted to break down some of the benefits of the Suze Orman Living Trust here. If you have further questions, the living trusts attorneys California at McFarlin & Geurts, LLP would be happy to discuss the benefits of living trusts and the difference between wills and living trusts.