Sacramento Trust Lawyer

One of the primary estate planning tools is a living trust. With this legal vehicle, a Settlor transfers assets to a trust for the benefit of one or more other people or organizations. They also specify how those assets will be handled if they can no longer manage them because of incapacitation or death.

The Settlor has control over the assets in the trust and can change the provisions at any time. When the individual passes on or if they are unable to manage their own estate, a Successor Trustee will take over and handle everything according to the Settlor’s instructions.

The Successor Trustee is responsible for:

• Using the assets for the Settlor’s benefit,
• Paying debts with the estate, and
• Distributing assets to beneficiaries.

How a Trust Differs from a Will

If you’re considering developing an estate plan, you might come across terms like “wills” and “trusts.” Both are valid options for planning for your future, but they have different functions.

Below are a few differences between wills and trusts:

• Probate: Before the provisions of a will can be carried out, it must go through probate, a court process where the will is verified. A trust avoids probate.
• Privacy: Because wills must go through court, some proceedings may be public. However, because probate is not necessary for trusts, personal matters stay private.
• Effective date: A will takes effect after a person’s death. A trust is effective during the Settlor’s lifetime.

Even if a person establishes a trust, creating a “pour-over” will is also important. The pour-over will catches assets that the person did not put into the trust. Without it, property inadvertently left out of the trust would be subject to distribution according to California’s laws.