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California Revocable Living Trusts The revocable trust, also called a living
trust, is a testamentary device with numerous advantages over a will alone: It enables one to appoint a trustee who will have
discretion over whether to pay income or principal to trust beneficiaries. Perhaps one child will be starting a business,
while the other has married a Microsoft Executive. Or, perhaps the creator of the trust wants to encourage his children or
grandchildren to pursue higher education. The trustee can be directed to encourage these pursuits over others, and pay income
or principal to the beneficiaries accordingly. Moreover, the trustee can also be directed to withhold payments if the beneficiary
exhibits negative behavior, say a drug addiction or gambling habit. These are just a few examples of the
flexibility that a revocable trust has in providing for beneficiaries. The following are a few of the advantages of a properly
drafted revocable trust:
- Avoiding
California probate cost (Our office will work with you to determine the cost savings);
- Your trustee may be able to act more quickly than an executor can
to administer and distribute the estate, as a result of acting independently of probate
court supervision;
- May eliminate the requirement of multiple probate proceedings
if assets are located in different states;
- Avoids the costs and hassle of conservatorship proceedings in the event that the settlor faces lifetime
disability or incapacity;
- Enables your assets to be managed over the long term and without unnecessary asset sales, even
in the face of incapacity or death; and
- The increasing
familiarity of banks and other financial institutions with trusts.
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