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Show Revocable living trust alternative to a will Imagine being able to put all your financial affairs in order long before be-fore dying, knowing that your bereaved be-reaved relatives won't have to set foot in probate court or haggle over huge legal fees. And if you become unable to manage your affairs.you'd never have to worry about losing control to a court-appointed guardian. Sound appealing? Then a revocable revoc-able living trust may be something to consider over a standard will. It already has caught California by a storm. But financial planners warn such an option may not be for everyone. In a revocable living trust or "inter vivos" in Latin real estate titles and other assets are placed in a trust while the owner is still alive. The document stipulates how the assets should be managed or distributed after an individual's death or if a person becomes incapacitated, in-capacitated, and it is subject to change at any time. Individuals can act as their own trustees, avoiding management fees or loss of control, or give the job to a professional. The advantages of a trust over standard wills can be substantial. In a will, an estate must be settled set-tled in probate, where legal fees and court costs can add up. Lawyers in California, for exam ple, receive between four percent and 10 percent of the gross value of an estate, according to one attorney. Delays in probate also are common com-mon settlement times average between nine months and two years and the proceedings are a matter of public record. In contrast, a living trust is settled set-tled without court proceedings. A successor trustee can immediately distribute assets according to the guidelines of the trust. Also, they're considerably harder to contest con-test in court. Generally, living trusts will be a little more expensive up front than a will, but it's a lot easier to put. . .assets in order when the gran tor is alive rather than have to look for them after death. Planners say a majority of their older, wealthier clients have been opting for such a plan, largely because be-cause it offers more privacy and it allows a surviving spouse to continue con-tinue living with little financial interruption. in-terruption. Most married couples already hold title to their homes as joint tenants. When one spouse dies, it just shifts into the survivor's name without going into probate. But when the second spouse dies, unless the house is placed in joint tenancy with another person, the property will go through probate. prob-ate. A living trust would be one way to avoid that. |
