In short, a Revocable Living Trust should be funded: Once the assets are moved into the trust, the terms of the trust govern how they are managed. This is usually accomplished by changing the title of the asset from the grantor’s name into the name of the trust. The term “funding” is used to describe the process of moving assets into the trust. The Grantor must sign the trust in front of a certified notary and then fund the trust with the Grantor’s property.The Grantor and Trustee must both be legally competent.Keep in mind there are certain beneficiary rights in California to be aware of. There must be a Beneficiary. A beneficiary is a party for whose benefit the trust is created and who will receive the direct or indirect benefit of the use of income from and/or principal of the trust property.The Trustee must follow the terms of the trust, as established by the Grantor. There must be a Trustee. A Trustee is a party whom property is transferred by the grantor, who receives legal title to the property placed in the trust, and who generally manages and distributes income of the trust.A Grantor is the person who transfers the property into the trust and creates the terms of the trust. There must be a Grantor(sometimes referred to as a Settlor or Trustor).In order for a trust to exist there must be trust property.What are the Requirements for a Revocable Living Trust in California? A Grantor who owns a business or professional practice.A Grantor who wants privacy in the administration of his/her estate while he/she is alive, and upon his/her death.A Grantor who wants to assure that his/her property will continue to be managed in the event that the Grantor becomes disabled or deceased.A Grantor who wants someone else to accept the management responsibility of their property.A Grantor who wishes to avoid the Probate process.Here is a list of 4 people who may benefit from setting up a living trust. ** We use the term revocable living trust and living trust interchangeably throughout this article. Living trust definition: A living trust is a legal arrangement established by an individual (the grantor) during their lifetime to protect their assets and direct their distribution after the grantor’s death. This important estate planning tool is very appealing to many California residents because of its flexibility. Put more simply, a revocable living trust is a document that allows individuals to continue to own and control their property while they are alive, then transfer it to whoever they want after they die, all while avoiding probate. However, there are other types of trusts that can provide this protection. It’s important to note that a living trust** does not provide asset protection, meaning that your assets in the trust can still be subject to claims by creditors. The trust is managed by a trustee of your choice, which can be yourself or someone else, who will be responsible for managing the assets in the trust for the benefit of the beneficiaries named in the trust document. To Begin, What is a Revocable Living Trust?Ī California revocable living trust is a legal document that allows you to transfer ownership of your assets (such as property, investments, and bank accounts) into a trust (a legal document) during your lifetime, and you can change or revoke it at any time as long as you are mentally competent. Whether you’re just starting to think about estate planning or you’re looking to update your existing plan, this post will provide you with the information you need to make informed decisions about your future. In this blog post, we’ll discuss what a living trust is, how it works, and the benefits of creating one. Do you want to ensure that your assets are protected and distributed according to your wishes after you pass away? One estate planning tool that you may want to consider is a revocable living trust.Ī living trust is a legal document that can help you avoid probate, minimize estate taxes, and provide for your loved ones.
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