What is a living trust?

A living trust is a legal document in which a person (the trustor) transfers ownership of their assets (such as property, investments, or money) to another person (the trustee) during their lifetime. The trustor can choose to either appoint themselves or someone else as trustee, depending on their wishes. The trustor can also specify how they want the assets to be managed and distributed after their death. In California, a living trust can be used to avoid probate, a legal process where the court oversees the distribution of assets from an estate. Probate can be a long and expensive process and involves court fees and the payment of lawyers and executors. A living trust can help to avoid these costs and eliminate the need for a court to intervene in estate proceedings. Living trusts also provide more control and privacy than a will. With a living trust, assets can be transferred to beneficiaries without the need for a public court proceeding. This means that the terms and conditions of the trust are known to only a few people, and the assets can be distributed in accordance with the trustor’s wishes. Living trusts must be set up while the trustor is still living and must be managed in accordance with California state law. The trustor must identify the beneficiaries, decide who will act as trustee, and choose whether the trust should be revocable or irrevocable. Additionally, the trustor must decide on how the assets will be managed and distributed.

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