What is a living trust?

A living trust is a legal document that allows you to organize your assets and provide for their distribution after you pass away. In California, it is an important tool for elder law, as it allows you to plan for and protect your estate. A living trust is set up while you are still alive. You transfer your property, such as real estate, bank accounts, investments, etc. into the trust. You may also have certain provisions written into the trust that allow you to protect your assets, such as preventing them from being placed into probate or exempting them from certain taxes. After you die, the trust is administered by a trustee who is responsible for distributing your assets according to your wishes. Depending on the type of trust you establish, the trustee may be your family, a financial institution, or a combination of both. A living trust can also be used for long-term care planning. With a living trust, you can specify how and when your assets should be used to pay for your care. This can help ensure that all of your financial needs are met and that your wishes are followed even after you are gone. Living trusts are an important part of planning for your future and can provide peace of mind that your financial needs will be considered even after your death.

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