5 Benefits of Having a Living Trust in California

A living trust is one of the most common estate planning documents in California, and for good reason. For many families, it can make life much easier for loved ones after a death or during a period of incapacity. Here are five benefits that lead many Californians to choose a living trust, along with one important detail that is often overlooked.

1. A Living Trust Can Help Your Family Avoid Probate

When someone in California dies owning significant assets in their own name, those assets may have to go through probate, a court-supervised process that can take many months and sometimes more than a year. California probate also involves fees set by law that are based on the value of the estate, which can be significant for families who own a home.

Assets held in a properly funded living trust generally pass to your beneficiaries without going through probate, which can save your family time, cost and stress.

2. Your Family’s Affairs Stay Private

Probate is a public court process, so information about an estate can become part of the court record. A living trust is a private document. In most cases, the details of what you own and who receives it stay within your family.

3. A Plan if You Become Unable to Manage Your Affairs

A living trust is not only about what happens after death. If you become ill or unable to manage your finances, the successor trustee you name can step in and manage trust assets for you. Without a plan in place, families sometimes have to go to court to request a conservatorship, which can be time-consuming and stressful.

4. Flexibility During Your Lifetime

Most living trusts in California are revocable. While you are alive and able, you typically keep control of your property and can amend or revoke the trust as your life changes, such as after a marriage, divorce, the birth of a grandchild or the sale of a home.

5. A Smoother Transition for the People You Love

A trust lets you name who will manage your affairs and how your property should be distributed. Clear instructions can help reduce confusion and family conflict during an already difficult time, and give your loved ones a clearer path forward.

The Detail Many People Miss: Funding the Trust

A living trust only helps with probate for the assets that are actually held in the trust. Signing a trust document is only part of the picture. Real estate, for example, generally needs to be transferred into the trust with a properly prepared deed. A trust that was never funded may not accomplish what the family expected.

This is one of the reasons it helps to have your trust and related documents prepared carefully, rather than relying on a generic template. LegalDoc-Prep can prepare requested deeds for transferring property into a trust along with your trust documents.

How LegalDoc-Prep Can Help

LegalDoc-Prep prepares requested living trust, pour-over will and related documents for Californians, based on the information and direction you provide. Your documents are prepared by David Weissman, a Registered and Bonded California Legal Document Assistant (Sacramento County Registration #2019-01) who has prepared legal documents since 1996, at a flat fee agreed in advance and fully online.

If your estate involves complex tax planning, business interests, or questions about which type of trust is right for you, a licensed California estate planning attorney can advise you. Learn more about our living trust and will document preparation.