Key Considerations for Setting Up a Revocable Living Trust

Setting up a revocable living trust is one of the most effective ways to protect your assets and provide clarity for your family. It allows you to maintain control of your property during your lifetime while creating a clear plan for how your estate will be handled after your death. Unlike a will, this type of trust helps avoid probate and keeps your financial affairs private.

For those considering estate planning in Oakland, California, my firm, the Law Offices of Gary R. Kershner, provides thoughtful guidance to individuals and families throughout the Bay Area. From Berkeley to San Jose, I work with clients to create customized solutions that reflect their long-term goals. 

Proper estate planning isn’t just about preparing documents—it’s about protecting your loved ones and preserving your legacy in a way that fits your values. Get in touch with me today.

What is a Revocable Living Trust

A revocable living trust is a legal document that allows you, the grantor, to transfer ownership of your assets into a trust while retaining full control over them during your lifetime. 

You can change the terms, add or remove assets, or revoke the trust entirely at any time. This flexibility makes it an appealing option for many individuals seeking a balance between control and protection.

Key Benefits of a Revocable Living Trust

• Avoiding probate: Assets placed in a revocable living trust generally bypass the probate process, saving your family time and legal costs.

• Maintaining privacy: Because trusts don’t become public record, your financial details remain confidential.

• Providing flexibility: You can modify or revoke the trust whenever circumstances change.

These benefits make revocable living trusts a central component of modern estate planning. They allow individuals to manage their wealth efficiently, prevent disputes, and maintain peace of mind knowing their wishes are clearly outlined.

Choosing a Trustee

The trustee is the individual or institution responsible for carrying out your instructions and managing the trust’s assets. Choosing the right trustee is critical because this person or entity holds fiduciary responsibility to act in your best interest and in accordance with the trust’s terms.

• Individual trustee: A trusted family member or friend who knows your wishes can serve as trustee, offering a personal understanding of your family’s needs.

• Professional trustee: Banks, trust companies, or lawyers can serve in this role, providing professional management and oversight for a fee.

• Co-trustees: Some individuals appoint both a personal and a professional trustee to combine emotional awareness with financial expertise.

Selecting a trustee should involve careful thought about their judgment, financial literacy, and reliability. Once selected, it’s important to communicate your expectations clearly to help the trustee perform their duties effectively. A well-chosen trustee helps preserve family harmony and assures your estate planning goals are properly executed.

Funding the Trust

Creating a trust document is only the first step—the trust must be properly funded to function as intended. Funding means transferring ownership of your assets into the trust’s name. Without this step, your estate may still go through probate, defeating one of the trust’s primary purposes.

Types of Assets That Can Be Placed in a Trust

• Real estate: Homes, investment properties, and land can be retitled in the name of the trust for easier management and transfer.

• Financial accounts: Checking, savings, and investment accounts can be included depending on institutional rules.

• Personal property: Items like jewelry, antiques, or family heirlooms can be transferred to preserve family history.

Once assets are transferred, it’s wise to maintain a clear record for your successor trustee. Properly funding your trust supports the effectiveness of your estate planning efforts and makes certain that your intended beneficiaries receive what you’ve designated without unnecessary legal hurdles.

Drafting the Trust Document

A well-drafted trust document serves as the foundation of your revocable living trust. It should be clear, comprehensive, and reflective of your specific wishes. This legal instrument details how your assets will be managed during your lifetime and distributed afterward.

Elements to Include in a Trust

• Identification of parties: The trust should name the grantor, trustee, and any successor trustees.

• Description of assets: Include all property transferred into the trust and note any special handling instructions.

• Beneficiaries: Identify who will receive the trust assets and under what conditions or timeline.

• Successor trustee provisions: Name a backup trustee to step in if the primary trustee can no longer serve.

Each of these elements helps prevent confusion and conflict among heirs. A properly written trust document supports your broader estate planning goals by offering legal clarity and reducing the risk of disputes later on.

Tax Considerations

Although a revocable living trust offers many advantages, it doesn’t automatically reduce your estate taxes. The assets remain part of your taxable estate since you retain control during your lifetime. Understanding the tax implications allows you to plan more effectively for the future.

• Income taxes: Any income generated by the trust’s assets is usually reported on your personal tax return.

• Estate taxes: Because the trust is revocable, the assets are included in your taxable estate.

• Gift taxes: Transfers into the trust typically aren’t treated as taxable gifts.

It’s wise to discuss tax matters with a lawyer familiar with estate planning. Doing so helps confirm whether additional steps—such as establishing irrevocable trusts or gifting strategies—might be beneficial to achieve your long-term financial goals.

Updating and Reviewing Your Trust

A revocable living trust isn’t static. It should evolve as your life circumstances change. Marriage, divorce, the birth of children, or significant financial shifts all warrant a review of your trust. Regular updates help confirm that your instructions still match your current intentions.

• Life events: Modify your trust when your family or finances change to prevent outdated provisions.

• Legal changes: Estate laws evolve, and updates may be necessary to remain compliant and effective.

Reviewing your trust every few years helps maintain accuracy and keeps your estate planning strategy on track. Taking the time to reassess can save your beneficiaries from confusion or unintended results later on.

Benefits Beyond Probate

While avoiding probate is a major benefit of a revocable living trust, there are many other advantages that contribute to long-term peace of mind. Trusts can protect vulnerable family members, preserve privacy, and provide structured distributions that match your goals.

• Support for minor children: A trust can manage funds for minors until they reach an age you specify.

• Protection for individuals with special needs: Properly drafted trusts can safeguard eligibility for public benefits.

• Continuity for blended families: You can specify how assets are distributed among children from different marriages to reduce potential conflicts.

Each of these scenarios highlights how trusts can provide flexibility and control that traditional wills can’t. When incorporated into a thoughtful estate planning strategy, a revocable living trust helps create lasting security for your family’s future.

This doesn’t have to be done on your own. Contact an experienced estate planning attorney. At the Law Offices of Gary R. Kershner, I help clients with estate planning in Oakland, California, and throughout the Bay Area, including Berkeley, Alameda, Emeryville, Rockridge, Piedmont, Fruitvale, Fremont, San Jose, San Francisco, and beyond. 

Get Started with Your Trust

Establishing a revocable living trust requires careful attention to your assets, beneficiaries, and long-term intentions. My firm can help you organize your estate, draft an effective trust, and make sure your wishes are clearly documented. Contact me today at the Law Offices of Gary R. Kershner to discuss your goals and take an important step toward securing your family’s future.