Key Advantages of Establishing a Living Trust

Planning for the future can bring up difficult emotions. Thinking about what might happen if you become unable to manage your affairs, or about your family handling your estate after you're gone, may feel uncomfortable. You might also worry about leaving your loved ones with unnecessary costs, delays, or disagreements during an already painful time. 

These concerns are understandable, particularly when you want your property and financial affairs handled according to your wishes. Taking steps now can give you greater control while providing your family with useful direction later. A living trust can be an important part of that preparation. When properly created and funded, a living trust may offer advantages in probate, asset management, privacy, and incapacitation.

At Law Offices of Gary R. Kershner, I help clients in Oakland and throughout the Bay Area, California, consider whether a living trust fits their circumstances and broader estate plans. I also work with individuals and families in Berkeley, Alameda, Emeryville, Rockridge, Piedmont, Fruitvale, Fremont, San Jose, San Francisco, and nearby communities. If you're considering a living trust, contact a trust lawyer at the Law Offices of Gary R. Kershner to discuss your goals and begin planning for the future.

What Is a Living Trust?

A living trust is a legal arrangement created during your lifetime in which assets are placed under the control of a trustee for the benefit of designated beneficiaries. In many revocable living trusts, the person who creates the trust can also serve as trustee while alive and able to manage their affairs. You may generally retain substantial control over trust assets during your lifetime while establishing instructions for what happens later.

A revocable living trust can often be amended or revoked during the creator's lifetime, subject to applicable law and the terms of the document. This flexibility can make a living trust appealing to people whose circumstances or goals may change over time.

Establishing the document alone, however, isn't the entire process. Assets generally need to be properly transferred or otherwise coordinated with the trust for its provisions to apply as intended. A trust lawyer can explain which assets may be appropriate for funding and which assets may be handled through beneficiary designations or other estate planning tools.

A living trust also isn't necessarily a substitute for every other estate planning document. Depending on your circumstances, you may need a will, power of attorney, advance directives, beneficiary designations, or other documents. A trust lawyer can help you consider how these pieces work together.

Living Trusts May Help Avoid Probate

One of the most frequently discussed advantages of a living trust is the potential to keep certain trust-owned assets out of probate after your death. Probate is a court-supervised process that may be required to administer property owned in your individual name when you die. Depending on the assets involved, probate can involve court filings, notices, administration, and other steps.

When assets are properly held in a living trust, the successor trustee can generally administer them according to the trust's instructions without subjecting those assets to the same probate process. This may allow beneficiaries to receive property through trust administration instead.

A Living Trust Can Offer Privacy and Continuity

Privacy is another potential advantage of using a living trust. Probate proceedings can involve court records and information regarding an estate. Trust administration, by contrast, generally isn't conducted through the same public probate process. As a result, a trust may provide greater privacy concerning certain assets and distributions.

A living trust may also help provide continuity if you become incapacitated. If you're serving as trustee and become unable to manage your financial affairs, a properly drafted trust can designate a successor trustee who may step in under the document's terms.

This can be especially valuable if you own a home, operate a business, manage investments, or have other financial responsibilities that can't simply be placed on hold. Without appropriate planning, your family may need to seek court involvement or use other legal procedures to address financial management during incapacity. Several practical considerations can affect whether a living trust is useful for your situation:

• Asset ownership: The trust generally needs to hold appropriate assets for its provisions to control those assets.

• Successor trustees: You can identify people or institutions to manage trust property if you can't continue serving as trustee.

• Beneficiary instructions: The trust can establish how and when certain beneficiaries should receive property.

• Incapacity provisions: The document can provide directions for management if you become unable to handle your affairs.

• Ongoing administration: Trustees may have continuing responsibilities involving records, distributions, taxes, and other matters.

These features can make a living trust useful beyond simply distributing property after death. A trust lawyer can help you evaluate the practical implications and determine whether the arrangement fits your family and financial circumstances.

Take the Next Step Toward Greater Peace of Mind With a Trust Lawyer Today

Creating a living trust can be an important step toward preparing for both incapacity and eventual estate administration. It may help reduce probate involvement for certain assets, provide privacy, establish continuity in financial management, and give you greater control over how property is distributed. At the same time, a living trust isn't a one-size-fits-all solution. Its value depends on your assets, family circumstances, goals, and how carefully the plan is created and maintained.

At Law Offices of Gary R. Kershner, I help clients in Oakland and throughout the Bay Area, including Berkeley, Alameda, Emeryville, Rockridge, Piedmont, Fruitvale, Fremont, San Jose, and San Francisco, take meaningful steps toward their estate planning goals. If you're ready to discuss whether a living trust could benefit you and your loved ones, schedule a free consultation at Law Offices of Gary R. Kershner and take the first step toward putting your wishes in writing.