What is a living trust?

A living trust is an estate planning tool that allows an individual to appoint a trustee to manage their assets for the benefit of their heirs. The trust is created while the individual is alive and the creator is known as the grantor. In California, the trust comes into effect immediately upon creation and the grantor can retain control over the assets and make changes or amend the trust as they choose. The purpose of a living trust is to manage and control the assets owned by the grantor during their lifetime and to provide for their beneficiaries after their death. The trust document outlines the trust terms, names the beneficiaries and determines how the assets will be distributed when the grantor passes away. The assets placed in the trust are not subject to the probate process, which can be a lengthy, costly and public process. Another advantage of a living trust is that it provides an individual with the flexibility to manage the trust while they are alive. The grantor can change the assets held in the trust, such as adding or removing assets, and can name beneficiaries, appoint a trustee, or change the language of the trust at any time. In conclusion, a living trust is an estate planning tool in California that allows an individual to manage their assets during their lifetime and to ensure that their assets are distributed according to their wishes upon their death. The trust document outlines the trust terms and designates the beneficiaries. A living trust offers the flexibility to make changes and amendments while the grantor is alive.

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