What is a revocable living trust?
A revocable living trust, also known as a living revocable trust, is a legal document created by an individual to manage their assets during their lifetime and to ensure those assets are distributed according to their wishes in the event of their death. Generally speaking, in California, when someone dies without a valid will, their property will be distributed according to the laws of “intestate succession” or inheritance law, which may not reflect the wishes of the deceased. Through a revocable living trust, an individual can name a beneficiary or beneficiaries who are entitled to receive the property after their death, and the trust can provide detailed instructions on the distribution of any property held within the trust. The primary benefit of a revocable living trust is that it allows an individual to avoid the court system when it comes to distributing their estate, which can be a lengthy and expensive process. A revocable living trust also offers more privacy than a will because the assets are not subject to the public probate process. Additionally, it gives an individual more control over their assets, as assets are transferred to the trust during their lifetime and can be modified at any time. However, in order for a revocable living trust to be effective it must be properly funded, meaning all assets must be properly transferred into the trust.
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