When the topic of living trusts comes up, it is often contrasted with the topic of probate property. And, many folks are not sure what the difference is between them. Although truth is, a wide difference exists. Let’s start with probate. It is one way of handling the estate of a deceased person. In fact, it is the handling of such property with supervision by the court. That said, probate can be a lengthy process. And since costs of the court process typically mount up, it can often be a costly one. As a result, it often delays and diminishes what beneficiaries receive. On the other hand, the benefits of living trusts are many in comparison. Through this method of handling a deceased person’s estate, you avoid probate. At the same time, you save the money that the probate process would otherwise expend.
A living trust is also referred to as “inter vivos” or “revocable” trust. And, its benefits include not just avoiding probate. They include the ability to designate assets. In fact, they can also include great tax advantages. Is it any wonder then, why many people choose to create living trusts for themselves and their beneficiaries?
How the Benefits of Living Trusts Work
In a nutshell, the person who creates a living trust, or grantor, enjoys the advantage and security of the trust holding their assets for them. Quite a safe haven for all real property, for example. At the same time, the grantor is typically also the trustee, or person who freely accesses and handles the affairs and assets of the trust. Although, when the grantor/trustee passes on, the assets are transferred automatically to the deceased’ s beneficiaries (no court intervention.) Then, the trust affairs and assets are handled by the successor trustee, or person the deceased designated, while alive with instructions, for the handling of the trust. In this way, the assets remain within the protection and purview of the trust totally. And, the successor trustee carries out the instructions left behind by the deceased, ensuring the trust’s beneficiaries receive their portion of trust assets.
In a living trust you can designate your assets for whom you want them to go upon your passing. And, during your lifetime, you can change a living trust, such as changing those designations, and so on. Hence, the term “revocable”, when referring to a living trust.
Living trusts can also go easy on taxes. For example, having such a trust can put you in a more advantageous tax bracket. And, another prime benefit for having a living trust is privacy. In fact, unlike probate and wills, a living trust is a private document and does Not become part of the public record. As a result, no one can search public records to find out about any details of your estate.
Not surprising, all these features of a living trust make it the option of choice, from the standpoint of many. Although perhaps best of all, the living trust allows the grantor/trustee to enjoy plenty of peace of mind during their lifetime. Then, the successor trustee and beneficiaries enjoy much the same throughout the remaining ‘life’ of the trust.
Would you like to learn more about the handling of living trusts or of probate? Would you like to learn more about California probate real estate and living trusts? Contact an expert in trust and probate property. In fact, contact one at the LaRoche Team. With decades of experience as trust and probate property specialists, you can expect Value-Added assistance and plenty of added peace of mind! Why not give them a call today?
