Articles Posted in Living Trusts

What Are Living Trusts Blog
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.

One of the questions many clients ask us is if they should have a living trust. There are numerous benefits to having a living trust. Below, our Folsom trust attorney at Travis G. Black & Associates can review these many benefits and help determine whether or not this is the right plan of action for you.

Keep on reading below for the top benefits of having a living trust!

The Benefits of a Living Trust

Not all living trusts are created equal—and for good reason. A living trust will depend on the individual’s life circumstances and their financial capacity. If you are unmarried or plan not to be married, and you have very few assets and no children, then you may not need to have a living trust. The same situation would apply even if you were married and have very few assets.

Perhaps the most significant drawback to not having a living trust is the fact that your

estate will be subject to the probate process. So, having a living trust is not only cost-saving in the long run, it protects your future and ensures that all of your wishes are carried out.

Are you the trustee of your living trust? You may be wondering what will happen if there comes a time when you become incapacitated, the successor you have chosen would manage your trust for you. Unless, of course, you did not move your assets to the living trust; if that is the case, another individual would be the one to manage the trust. Some of the factors that might affect your trust could depend on whether or not your assets were considered community property or separate property, as well as if you have a durable financial power of attorney.

Will My Spouse Control the Estate?

Remember that if you were married, the assets that you have accumulated during the marriage might be grouped under the category of community property. Your possessions that were given to you or inherited to you before you were married are considered separate property. In our state, community property transactions are handled by the spouse if you become incapacitated. Separate property, on the other hand, may be managed by an outside agent or someone acting as “attorney-in-fact,” otherwise known as durable power of attorney.