Revocable Living Trusts

There are many different types of trusts, but the most basic of them all is probably the Revocable Living Trust, sometimes referred to only as a Living Trust. These trusts have become increasingly popular in recent years as a way of avoiding probate.

A trust is a contract between the person who created it ("settlor" or "grantor") and the trustee on how the assets held by the trust will be managed and distributed following the death of the settlor. Typically, at least initially, the settlor and the trustee are the same person (or people). The trustee accepts the assets into the trust; assuming the settlor no longer owns any assets outside of the trust, probate can often be avoided altogether.

Once the settlor passes away the process of distributing the estate to the beneficiaries can be completed faster and far less expensively than would be the case if the estate were to be submitted to probate. For example, an estate worth $250,000 would incur up to $8,000 in probate related legal fees; that fee can usually be avoided by establishing and properly funding a revocable living trust.

Trusts are also more work for the client than having a simple will. Unlike a will, there is more work to do than signing on the dotted line--the settlor must also make sure that assets are put in the name of the trust. This typically means changing the names on bank accounts, real estate, and other assets. If the settlor fails to include an account or transfer a parcel of land, the trust may fail and face probate.

Important

This information is not to be construed as legal advice; you should consult an attorney about your specific issue before relying on anything discussed on this website. If you are looking for advice about your specific legal issue, I offer all prospective clients a free initial consultation and my services are available on either an hourly or flat-rate basis and at reasonable prices. Please feel free to contact me if you have any questions--my contact information is available here.

This web site is designed to provide general information about the services offered by the Law Office of Neal E. Bartlett ("the law office") and constitutes attorney advertising under the California Rules of Professional Conduct. The information presented at this site should not be construed to be formal legal advice nor does it form the basis of a lawyer/client relationship. No lawyer/client relationship is formed until you and the law office sign (either in writing or electronically) a retainer agreement stating the nature of the legal services that the law office will provide to you and the actual or estimated costs of those services. Any information provided to the law office that does not result in a retainer agreement between you and the law office will be kept confidential but may be subject to disclosure pursuant to court order or the applicable ethical rules.

IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, please be advised that any U.S. tax advice contained within this website, or any other communication from the law office, is not intended or written to be used or relied upon, and cannot be used or relied upon, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.