Revocable Trusts In California
These days, many people are looking at the legal option of establishing trust funds to manage the disposition of their assets, especially real estate. There are several reasons why this is a desirable option. In California Revocable Living trust arrangements are particularly popular. When a trust is established, the assets in the trust are automatically exempt from probate taxes. In addition, assets transferred through the trust process save money in the form of taxes, time that would otherwise be ties up in probate proceedings and also maintain privacy, since probate proceedings are a matter of public record and trust transfers are not. There are several compelling financial reasons to establish a trust, especially a revocable trust. Simple wills or trusts can yield unexpected results. In California revocable living trust laws are designed to reduce or eliminate those risks. One scenario presents a situation where a parent, upon retirement, places the family home and all other assets in trust for the only child, a married adult. That child is killed in an accident while the parent is still alive and living in the family home. The surviving spouse, who is the sole heir, would then have the legal right to sell the house, effectively leaving the parent homeless and, possibly, without assets. In California revocable living trust arrangements would have eliminated the problem outlined the previous scenario. A revocable living trust is in the total control of the original owner of the assets in the trust (the 'grantor') as long as the grantor lives. The grantor also has the option of placing only selected assets in a trust. It is vital that an individual considering a trust arrangement of any kind seek the advice of a qualified attorney and or financial consultant who is well versed in the trust laws of the state in which the state of residence. What works in Alabama, for instance, may well not be advised by a trust administrator in Orlando. There are many compelling reason to investigate the applicability of trusts for an individual situation. In addition to avoiding probate upon the death of the grantor, trusts can also be used to provide assistance to one who is disabled, on Medicare, or otherwise not a good candidate to simply receive a transfer of assets. California revocable living trust arrangements are particularly popular for these purposes. Trusts are also more manageable, since all trusts have one or more trustees who are responsible for the oversight and disbursement of trust assets.
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