A living trust can be used in place of a will in several ways. This is a legal document that outlines your wishes for handling your finances,
bank accounts, your properties, and other important possessions to be administered while you are still living. You also create a plan for how
these will be handled after your death or you become incapacitated.
For the most part, people tend to name themselves as the trustee to manage the trust so that you remain in control of what goes in and out of the
trust. You may also wish to name a successor to manage the trust when you are no longer able to do so.
The Purpose of a Living Trust
Revocable living trusts are the most common types of living trusts, as this gives the trust maker the ability to change the trust to suit their needs or when circumstances change as necessary. They are called “living” trusts because you, as the trust maker, have this ability to change them while you are living or revoke the trust. This is also called an “inter vivos” trust.
The living trust agreement provides for the following:
- Allows the trustee to manage the assets contained in the trust
- Provides instructions for the trustee to manage the assets according to
- The trust maker will name beneficiaries who are expected to receive the
assets in the trust
- Provides guidance to trustees, and imposes certain rights and responsibilities
for managing and distributing the assets contained in the trust
All trustees have fiduciary duty, which means that they must adhere to your wishes. Obviously, the trustee cannot use the money for their own benefit or personal enjoyment. Using the assets beyond what the trust maker has arranged or without permission would be considered a breach of fiduciary duty. All trustees must act in accordance with the trust
and explicitly to benefit the trust maker and beneficiaries.
Have Questions? Contact Us!
Our Folsom trust attorney at Travis G. Black & Associates is 100% committed to our clients’ success. If at any point you have questions about creating a living trust, do not hesitate to contact us. Living trusts may be the most critical aspect of your estate plan. Our seasoned attorneys can help you every step of the way.
Request your free case consultation with us by calling (916) 962-2896.