People sometimes shy away from things that they don’t understand, and as a result they can wind up missing out on good opportunities. This is something to keep in mind when you are thinking about the subject of estate planning.
Most people have heard of trusts and trust funds, but many individuals assume that these instruments are something that only wealthy people need. In reality, the creation of a revocable living trust could be a good choice for many people who would consider themselves to be ordinary Americans.
Revocable living trusts enable probate avoidance. If you simply use a last will to express your wishes, your estate must pass through the costly and time-consuming process of probate. In the long run, creation of a trust may be a less expensive and more efficient option.
The way a trust works is that you create a living trust appointing a trustee and naming your beneficiaries, and then you fund the trust. Upon your death, the trustee administers the trust assets, and the beneficiaries receive distributions from the trust as directed by you in the trust agreement.
While you are alive, you can act as the beneficiary and the trustee, and this ongoing control adds to the appeal of revocable living trusts. If you create such a trust and act as the beneficiary and the trustee, you name successors to assume these roles upon your passing or incapacitation.
To learn more about creating a trust and trust administration, simply take the time to get in touch with an experienced San Jose estate planning attorney to arrange for an informative consultation.