Specifically, when you die, your beneficiaries can avoid the time-consuming, stressful, and often costly probate process; the trust funds are transferred to them directly. People who are already dealing with an emotionally painful circumstance will have one less issue to worry about.
A California living trust is authorized by the probate code to allow beneficiaries to avoid the entire probate process and readily access the trust funds for whatever purpose they need, as long as the trust document lists it. A living trust is virtually always less costly than probate, and the savings can be significant.
In a trust, your trustee can also relieve a burden if you are struggling to manage property. Managing property is no easy task. Many people do not have the time or experience to manage property, invest assets, do paperwork, or worry about tax issues. A capable trustee lets you assign these duties to someone else.
However, because a trustee plays such a significant role, always make sure the person you choose is trustworthy and committed to protecting your interests. A trust is not supervised by the court, so there is some risk that a dishonest trustee could take advantage of that.
Fortunately, the benefits of having a living trust generally outweigh the risks. Privacy, for example, is a benefit many people appreciate, and the contents of a trust exist inside a private document.
Only the beneficiaries and other selected persons may see the details. For many assets, there is no legal need to make them part of the public record, as long as they are in the living trust. If you want to keep them strictly within your family, you can.
A final benefit of a living trust is that you control how the money will be spent. If you are afraid your kids may abuse their beneficiary status by spending the money on expensive vacations, you can create a specific purpose for the fund, such as college. You can also create a condition, such as marriage, for access to the funds.
If these advantages interest you, call the Law Office of Richard Nevins now and set up an appointment. An expert attorney who deals with trusts everyday will advise you on your estate planning options and help you find the best solution. Fill out the form, so that we can fully understand your situation before you come in for your appointment.