Living Trusts: FAQs (Pt. 2)
February 28, 2015
Continuing from Living Trusts: FAQs (Pt. 1), here, we’ll respond to some more common questions that come up when people in California are considering developing living trusts.Living Trusts: More Important Answers Q – What happens with my living trust if I’m incapacitated in the future?A – While the specific course of action will depend on the provisions of the living trust you’ve set up, in general, your selected “successor trustee” would step in to manage the trust and carry out your wishes regarding it.
Here, we also want to point out that living trusts are just one component of estate planning that should generally be supported with other tools, such as powers of attorney, wills, etc. This is because, should you become incapacitated in the future:
Your successor trust will be able to manage the assets held by the trust, but (s)he may not have any power or control over your assets that have not been transferred to the trust.
Other estate planning tools can offer you other protections and prevent the court from appointing strangers (or even people who you may not prefer) to be conservators for you and your affairs.
A – Upon your death:
- A revocable living trust that you have set up will automatically become an irrevocable trust.
- Your successor trustee will manage and distribute the property of the trust according to your wishes (detailed in the trust documents).
- This can be done without the intervention of the court, which can save your beneficiaries time and money.
Assets and property you own outside of the living trust will likely have to go through probate.Q – How are assets transferred into living trusts?
A – After you’ve officially set up a living trust, the next step will be to transfer assets into the trust – or funding the trust. This process generally involves completing various paperwork to transfer property, like the following, into living trusts:
- Real estate (including that owned in other states)
- Bank account holdings
- Stock and bond certificates
- Community property.
Check out the conclusion to this blog series for some more answers about living trusts! It will be published soon.Santa Clarita and San Fernando Estate Planning Attorney at the Law Offices of Darrell C. Harriman
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