Consumers and professionals prefer the use of a revocable living trust in San Diego instead of a traditional will. There are numerous benefits to creating a trust over the living will as the primary estate document too. For those that are unsure if a revocable trust is right for them, it is best to consult with an estate planning attorney in the area. Not all estates will benefit from the use of a revocable living trust.
Property May Avoid Probate
Probate is a costly, time-consuming process that will occur after a person dies. The estate and the living will go in front of a probate court judge, who will then ensure the estate is administered per the document. In some cases, it may take six months to several years for an estate to complete the process. This time span means that beneficiaries must wait for their inheritance until the estate is closed out.
When a revocable living trust is set up in San Diego, the estate avoids probate court. Avoiding the costs of probate court alone is a factor for those that select the living trust over a will. Those that are not worried about costs will still elect for a living trust so that their loved ones do not have to wait for their inheritance.
Funded Trusts Protect During Times of Incapacitation
A properly drafted and funded trust could protect a person while they are incapacitated. The trust manages assets instead of the court appointed guardian. A will, on the other hand, only goes into effect upon death; not incapacitation.
Assets are Enclosed in a Single Plan
A living will is not as extensive as a revocable living trust created in San Diego. A living trust brings all assets together, including those that cannot pass through a will (such as a retirement account). It is easier to provide inheritances to young children, pass along benefits, and keep everything in a single place when they are funded into the trust. Wills can only control assets in the testator’s name too; while a trust can control joint-owned assets as well.
A Trust is a Private Family Affair
A living will is a public document. When the estate goes through probate, this is also a public process and the records are available to the public. Trusts are private; therefore, an estate with a trust is less likely to encounter creditors trying to file nuisance claims against the trust after the testator’s death.
A trust cannot guarantee 100 percent privacy, but it is more private than a living will.
A revocable living trust, however, only controls assets that are funded by it. Therefore, it is the testator’s responsibility to add new assets to the trust. If assets are not added before death, those assets excluded must go through probate before they may be distributed along with the assets in the trust.