An estate plan has four major tools. The first is the living trust, the hammer in the toolbox. This is general information. It may not apply to your situation, but it applies to many people.
The cast of characters
A living trust has three main roles:
Settlors
create the living trust. Older documents use the terms "grantors" or "trustors." "Settlors" is the more modern term.
Trustees
manage the trust. Everything inside the trust is managed by the trustees.
Beneficiaries
are the people who benefit from the trust.
At the start, the people who set up the trust usually fill all three roles. They create the trust, serve as their own trustees and are their own beneficiaries.
The three main benefits
I tell clients there are generally three benefits to having this tool in the toolbox.
Anything in the name of your trust avoids the court system.
The key is that you must put the asset in the name of the trust. If you do, it does not go through the court system after you pass away.
Your trustees manage what is in the trust.
Your successor trustees are people you choose in advance, not anybody who wants the job.
Everything in the name of your trust is governed by the rules of your trust.
If an asset is in the name of the Smith Family Trust, for example, it is governed by whatever the Smith Family Trust says.
Call our office today at 661-414-7100 to see if we can assist you with your estate plan. Remember, a living trust is only one tool in the estate planning toolbox.