If you are planning your estate, a living trust can be a great tool. One needs to prepare the living trust when alive, mentioning the names of the beneficiaries. After the demise of the person holding the living trust, the assets are divided among the successors. Well, instead of making a living trust California, if you opt to prepare a will, it has to go through a probate. In simple words, a living trust is always a better choice.
Steps to create a living trust in California
By following the below-enlisted steps, you can successfully create a living trust California.
Step1: Choose the type of a trust
You can choose to go with either a single trust or a joint one. In the case of a joint living trust, each spouse has to include their separate property into a joint venture.
Step 2: Choose the trustee
You can either be the trustee or hand over the responsibility to a person of your choice. The trustee is in the charge of administering the assets after your demise or when you are incapable of making any decision. So, make sure to choose the trustee carefully.
NOTE: If you mention your name as the trustee in the living trust paper, it will be better to name a successor trustee who can take over the responsibility if someday you become incapable of handling your estate-related affairs.
Step 3: Draft the trust paper
After you choose the names of the trustee as well as the beneficiaries, it's time to draft the document or court papers. The best you can do is seek living trust California paralegal services.
Step 4: Notarise the document
Now comes the most crucial step, without which your whole effort will be invalid and meaningless, i.e. notarizing the documents in the presence of a professional notary.
Step 5: Transfer the assets into the trust
Well, the last yet most important step of creating a living trust is transferring the assets into the living trust. The process is also called 'funding the trust'. If you skip this step, your trust will be left blank when passed to your successor. It requires a few basic paperwork, and a paralegal expert can help you in this matter.
Does everyone need a living trust?
Well, the shortest answer is no. Not everybody requires a living trust. A person with a larger estate and complicated estate plans can apply for a living trust.
Do you still need a will even after living trust?
Well, we all know that the sole purpose of planning a living trust is to avoid will. But, still, you might be required to write a will, even if it might never be of any use! The reasons are as follows:
Accounting for estates you forget to transfer un the trust
If you have minor kids, you will have to mention the names of the guardians in the will.