Estate planning needs you to marshal all of your possessions and make appropriate decisions as to whom do you want to get them. Utilizing a Temecula Estate Planning Attorney is the process whereby you create a tactical plan for 1) the management and circulation of your assets in case of your death or incapacity, and 2) the performing of your dreams concerning the care-taking of your individual or stays upon your inability or death. It requires you to assess the financial and tax consequences of those actions and get ready for them.
How does a living trust prevent probate with estate planning?
When you perform the living trust declaration and then adequately fund the trust, what you have done is that you have created a legal entity different and apart from yourself that is now entirely working doing whatever it is that you told it to do. Then, when you funded your trust, you changed the name of the owner of your assets from you separately to you as Trustee of your faith. So at that time, you are still in total control of your properties because you are the Trustee of the trust and whoever is Trustee is who handles the possessions that the trust owns. You are still the BENEFICIAL owner of your belongings (i.e., the properties are yours to do with whatever you please) however you are no longer the “LEGAL” owner of record.
The Probate Court is only concerned with who the legal owner of possession is. So now you have your trust and are buying and selling things just like before other than that now somewhat of signing the agreement as “John Q. Public”, you now sign whatever as “John Q. Public, Trustee”, it’s that basic. Legally speaking, you now own nothing, your trust owns everything. So when you pass away, given that you do not hold anything, there is entirely nothing to require to the Probate Court. However when you passed away, your living trust didn’t pass away, it only keeps going, that is why they call it a living trust. A Living Trust holds title to your possessions and has a life of its own.
When you initially set up your trust, you made yourself (and your spouse if wed) the trustee who controls and manages the assets of the trust. However also at that time, you selected whom you wished to take over for you when you (and your spouse, etc.) can no longer handle it. That person is called a Successor Trustee, and they, therefore, have the very same legal powers that you did so that they can sign any documents needed to perform the management and personality of your possessions that you defined in the initial trust declaration. The follower trustee follows your particular directives on what to do much the same as an executor would, other than there is no probate. It is private, needs no court guidance, can be administered much quicker with less cost, and is harder to contest.
What is the difference between a Will and a Living Trust in estate planning?
A will is merely a document which lists out four fundamental things. It states whom do you wish to be your Executor, who is to receive your properties upon your death, whom do you want to to be guardians of your kids and what desires do you have concerning burial/cremation and so on. It has no legal authority of its own and is not a separate legal entity, it is merely a statement of your intent, and for that reason, it should be administered through the Probate Court for it to gain complete legal status for estate administration functions. Having to go through the probate procedure is a time consuming difficult ordeal for even the most patient individual and last for anywhere from nine months to 2 years, longer if contested.
A living trust is a separate legal entity and has full legal authority by itself and therefore can prevent the probate system entirely, can manage all of your estate distribution and management desires, can accomplish significant cost savings on estate taxes, and can stay completely private so that nobody knows your service other than those individuals that you wish to understand your individual and financial affairs.
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The Law Firm Of Steven F. Bliss Esq.43920 Margarita Rd Ste F, Temecula, CA 92592
Phone: +1 (951) 223-7000
Fax: +1 (858) 268-8664
Make sure to call Steve Bliss your Temecula Estate Planning Attorney!