Revocable Living Trusts in California

A Revocable Living Trust (often simply called a "living trust") is a powerful and popular estate planning tool in California. It's a legal arrangement where you (the grantor or trustor) transfer ownership of your assets into a trust, which you typically control as the trustee during your lifetime. You name successor trustees to manage the trust if you become incapacitated or pass away, and beneficiaries who will receive the assets upon your death.

This page provides general information about revocable living trusts in California. It is not legal advice. Trusts involve specific legal structures and implications. Consulting with a qualified California estate planning attorney is essential to determine if a trust is right for you and to ensure it's properly created and funded.

Key Benefits of a Revocable Living Trust

The primary advantages of using a living trust often include:

• Probate Avoidance: Assets properly funded into the trust typically bypass the time-consuming, public, and potentially costly probate court process.
• Planning for Incapacity: Successor trustee manages assets if you become unable, often avoiding court conservatorship.
• Privacy: Trust terms and asset distribution generally remain private, unlike public probate records.
• Control: You retain full control over trust assets during your lifetime as grantor and trustee.

How a Living Trust Works

1. Creation: Work with an attorney to draft the trust document.
2. Funding: Formally transfer asset ownership into the trust's name (critical step).
3. Management: You manage assets as trustee during your lifetime.
4. Incapacity: Successor trustee takes over management if needed.
5. Death: Successor trustee distributes assets to beneficiaries, bypassing probate.

Wills vs. Living Trusts

While both are estate planning tools, they serve different primary functions:

• A Will directs distribution after death and nominates guardians but requires probate.
• A Living Trust manages assets during life, incapacity, and after death, avoiding probate for funded assets.
• A "pour-over Will" often accompanies a trust to catch unfunded assets (these still go through probate).

Is a Living Trust Right for You?

A living trust can be beneficial for many, particularly homeowners or those with significant assets seeking to avoid probate. However, they involve more upfront effort and cost than a simple Will. An attorney can help you weigh the pros and cons for your situation.