What is a revocable living trust?
A revocable living trust is an estate planning tool that allows a California resident to manage their property and assets during their lifetime and to provide for the distribution of these assets upon their death. It is also known as a “living trust” or an “inter vivos trust.” A living trust is different from a will in that it avoids probate and is much more effective in safeguarding the assets of the trust. A living trust serves two main purposes in California. The first purpose is to provide for the distribution of a person’s assets during their lifetime. This might occur if the trust maker becomes unable to personally manage their assets due to illness or disability. The trust is used to provide for the care of the trust maker’s dependents and the distribution of their assets. The second purpose of a living trust is to provide for the orderly and efficient management of the trust maker’s property and assets upon their death. Upon their death, the trust maker’s assets are managed according to the provisions of the trust that were set up when the trust was created. This may include distributions to beneficiaries, payment of taxes and other debts, and other transaction necessary for the distribution of the trust maker’s assets. One of the advantages of a living trust is that it avoids the delays and expense of probate. Probate is the process of having a court verify the validity of a will, appoint an executor, and then manage and distribute a person’s assets according to the provisions of the will. In California, a living trust avoids probate and allows the trust maker to control the distribution of their assets in the event of their death.
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