What is a revocable living trust?

A revocable living trust is an estate planning tool used in California that allows you to have control of your assets while alive, and also control how those assets will pass to your heirs after your death. It is an agreement that you, the trustor, enter into with a trustee, typically you, who will manage the assets in the trust. You decide exactly how the assets will be managed and transferred during your life and after your death. The trust is ‘revocable’ because you can revoke, modify or terminate the trust at any time during your lifetime. You can also change who is the beneficiary of the trust, make additions or deletions, and change the trustee if you wish. The assets that can be placed in the trust include but are not limited to: real estate, investments, bank accounts, stocks, bonds and mutual funds, life insurance policies, and business interests. Once assets are in the trust, you no longer own them, the trust does. But you have control over how those assets are managed and distributed. A revocable living trust prevents your assets from going through the probate process upon your death. This means that your assets can be quickly and efficiently transferred to your beneficiaries, without the burden of court proceedings. It also keeps the details of your assets and estate private since they don’t become part of the public record.

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