Most people have a basic understanding of a will, but the concept of a trust often seems confusing or intimidating. This post will clarify what a revocable living trust is, how it works, and why it can be an essential part of your estate plan.

We’ll cover:

• What a revocable living trust is

• How it works

• How it is funded and administered

What Is a Revocable Living Trust?

A revocable living trust is a legal document that allows you to:

• Transfer certain assets into a trust

• Maintain control over those assets while alive

• Plan how assets are distributed after death

Assets that can be placed in a trust include:

• Real estate (your home, investment property)

• Stocks, bonds, and other securities

• Bank accounts and other personal property

Note: Some assets, like retirement accounts and professional corporation stocks, generally cannot be transferred into a trust.

How Does a Revocable Living Trust Work?

The person who creates the trust—called the grantor—retains full control over the assets while alive. This is why it is called a “living” trust. As the grantor, you can:

• Receive all income generated by the assets

• Add or remove assets

• Amend or revoke the trust at any time

The trust allows you to manage your property exactly as you would outside the trust, but with added flexibility for estate planning. 

Administration and Distribution After Death

Once the grantor passes away, the trust moves into the administration and distribution phase. Key points include:

• Custom Distribution: The trust specifies how assets should be distributed to beneficiaries (spouse, children, grandchildren, etc.)

• Avoids Probate: Unlike a will, assets in a living trust do not go through probate, saving time, money, and avoiding public disclosure

• Flexible Management: Assets can be distributed outright or remain in the trust for ongoing management, depending on the grantor’s instructions

Every trust can be customized to reflect your family’s unique needs and goals, providing a tailored estate planning solution.

Why Consider a Revocable Living Trust in California?

• Privacy: Trusts are not public records, unlike probate proceedings

• Efficiency: Assets can be transferred to beneficiaries faster and with fewer costs

• Flexibility: Grantors maintain control during their lifetime and can modify the trust as needed

• Protection: Helps manage and safeguard assets for minors or dependents

A revocable living trust offers peace of mind, knowing that your estate will be handled according to your wishes while minimizing complications for your family.

Take the first step in protecting your estate. Schedule a consultation with our estate planning team to learn how a revocable living trust can meet your needs.