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What are benefits of setting up a living trust in California?

On Behalf of | Sep 30, 2021 | Firm News |

Most people consider creating living trusts as part of their estate planning process. Basically, a living trust is a legal document that shares a lot of similarities with a will. The will lets you name the people or organization that you would want to inherit your assets when you pass on. 

living trust, on the other hand, directs the transfer of ownership of your property to the trust’s “trustee.” The trustee is then responsible for managing your property according to the instructions contained in the trust document. 

Here are valid reasons why you should consider setting up a living trust in California.

To avoid the costly probate process

Probate is the legal process in which the court authenticates your will and approves its executor or decides how your assets are distributed if you die intestate. One of the main benefits of a living trust over a will is that any property held in a living trust cannot go through probate. This can be very important if you are a resident of a state like California, where the probate process is usually very protracted and costly. A living trust can save your estate a significant amount of money, which means that your beneficiaries will get most of your property. 

Avoiding probate also lets the trustee distribute your assets much faster after your death. This is important if your dependents need fast access to their inheritances so they can carry on with life. 

To protect your privacy

A living trust can help you keep your assets and estate plan away from the public eye. If all you have is a will (or if you do not have a will at all), you can be sure that your estate will have to go through the public probate process when you die. On the other hand, a living trust is a private legal document that is only accessible to the parties involved, such as the trustees and your beneficiaries. 

A living trust offers many benefits over a will. And setting one does not have to be time-consuming or complicated if you seek professional help during the estate planning process