The Importance of a Living Trust in California

5:55 pm Uncategorized

A living trust can help to avoid many potential roadblocks. If you haven’t yet considered a living trust in California, you’ll want to acquaint yourself with some of the reasons why they are so important.

The first and perhaps most important reason to set up a living trust through California estate planning attorneys is the consideration of your children under the age of 18. In the event that you suddenly or unexpectedly pass away, a living trust will hold any of the monies garnered from your life insurance policy. Without this protection, a guardianship will be created for your estate – and this can be extremely expensive. The living trust allows you to choose your own “successor trustee” who will manage the trust, as well as real estate holdings, or any other assets that may be a part of your overall estate for your children. When you set up the living trust with the help of your California asset protection lawyers, you will have the opportunity to decide what your children will have access to and when they will get it.

Beyond the wellbeing of your children, the next most important reason to consider a living trust is your own health and wellbeing. A living trust will allow you to avoid having a guardian appointed to you as an adult. Your living trust will need to name a power of attorney – this will give your family the right to make decisions regarding your health, which is especially important if you face a coma or are otherwise not cognitively well. In addition to allowing family to make health decisions for you in the event of incapacitation, it also gives them the right to manage your liquid assets and work with the power of attorney and executor without the intervention of the court.

In addition to these benefits, a living trust can help to avoid probate if you include real property and assets under its protection. This can save your loved ones from months of tedious probate and from spending a great deal of money in court fees and the costs associated with publishing the opening of the probate – a legal requirement of beginning the process of probate.

Help is available to you by contacting your Southern California financial planning experts today.

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