The main benefits of a trust are to avoid probate and reduce estate taxes. A revocable living trust allows the transfer of personal assets to a trustee and other beneficiaries after a person’s death. A trust is one of the most widely used estate planning tools in California.
Avoiding the probate process is the most obvious benefit of using trusts over wills. The estate owner names the beneficiaries in a document and designates a trustee to handle the rest of the plan.
Guarantee distribution of assets
As long as you complete the trust paperwork correctly, your entrusted funds and property will be distributed to their rightful heirs. The trustee works only according to the document’s terms and the rules of the estate court.
A revocable living trust allows you to modify its terms, such as the types of heirs to the amount of money designated to each person. As long as you, as the trustor, approves these changes, the results are final. The revocable version allows you to make changes to your future life plan based on new or unexpected life events.
Provides benefits before or after death
A revocable living trust provides funds to you or family members in case of a disability or emergency. Upon your death, the assets are available immediately to your trustee or beneficiaries.
A trust is an alternative option to a will that provides additional benefits. A trustor retains the privacy of handling his or her personal assets without going through probate court. A revocable living trust includes terms that can be changed or terminated at any time. The distribution of a person’s estate is handled exactly as it is stated on paper.