Living Trusts and Wills

Living Trusts

A living trust is a financial structure that contains money and assets, which must be managed by a trustee according to the trust document.  There are two types, a revocable trust and an irrevocable trust. The most common type is a revocable trust that can be managed and changed through the lifetime of the grantor(s).  An irrevocable trust, on the other hand, is permanent after creation.  Living trusts are important estate planning tools and are legal vehicles that allow for a variety of options for managing assets. One of the primary benefits of a living trust is its flexibility, which allows for holding different types of assets and different types of conditions for managing and administering those assets. The other primary benefit as compared to a will is the lack of a probate requirement. Compare this to a will, which requires the "blessing" of a probate court before it can be determined to be valid and before it can be administered. This can take lots of time and money. For most people who live in the Riverside and San Bernardino County areas, a Revocable Living Trust is the most important estate planning tool you can have. It will protect your assets from government inefficiency and wasteful attorneys' fees. 

Wills

A will is another important component of estate planning. Without a will (or a trust), upon death, your assets will be distributed according to state intestate law and not according to your final wishes. Contact us today to learn how we can help you protect your future by establishing a will or a trust (or both).
A will includes (i) designation of an executor who will carry out the provisions of the will, (ii) beneficiaries, who are the individuals or entities inheriting assets, (iii) instructions for when and how assets should be distributed to beneficiaries, (iv) guardians for any minor children, and (v) signatures by two witnesses. Some assets may already have beneficiaries associated with them, separate and apart from wills. A common example of this is a life insurance policy, where a beneficiary is often named at the time the policy is created.  Other assets, however, do not have stated beneficiaries, such as physical property.  A will is subject to probate, which is the legal process for settling an estate. In California, the probate process can take many months and cost a lot of money. This is why a living trust is a good alternative and complimentary tool to a will.