San Jose Revocable Living Trust Lawyer

Establish Your Living Trust With Our Skilled San Jose Lawyer

Like many San Jose residents, you are probably concerned about your family’s future after you pass away. California has strict laws, and without proper estate planning, your loved ones could have to endure the lengthy probate process. Creating a revocable trust is an ideal way to ensure that your family members and other beneficiaries can access their financial resources quickly and efficiently.

Creating a revocable trust has many advantages, but it should always be done with the assistance of an experienced estate planning attorney. If you are considering creating a trust, please contact Tree of Life Law Firm today to schedule a complimentary initial consultation, where we can discuss your legal options.

What is a Revocable Living Trust?

A revocable living trust is one of several ways that Californians can use to protect their assets and their family’s future after their death. Under California law, a revocable living trust enables trust creators to control or remove assets and designate how they will be distributed upon their passing.

As the name suggests, the title “revocable” means that the trust can be altered or canceled at any time per the trustor’s discretion. The word living is included because it was composed during the creator’s lifetime.

A core benefit of a revocable trust is that it can help beneficiaries avoid probate court. Unlike a will, the details of trust documents remain private, unlike wills, which become a matter of public record, providing beneficiaries with an added layer of privacy. Even so, unlike an irrevocable trust, a revocable trust does not shield assets from creditors or lawsuits.

How is a Revocable Living Trust Funded?

A revocable living trust is funded by transferring your assets into the trust. Some of the most common assets placed in a revocable living trust include bank accounts, real estate (including primary residences and rental properties), and collections of art, jewelry, and antiques.

All assets must be retitled into the name of the trust to meet all California legal requirements. Failure to properly retitle your assets could lead to unnecessary legal issues for you or your family in the future.

Several assets should not be placed into a revocable trust, including 401(k)s, IRAs, life insurance policies, and annuities. Doing so could result in significant tax penalties, and a revocable trust should only be named a contingent beneficiary to receive funds if the intended beneficiary passes away before you do.

The most effective approach is to consult with a knowledgeable attorney who can assist you in properly retitling assets and explain which ones should or should not be included in the trust.

Why Doesn’t a Revocable Living Trust Protect My Assets From Creditors?

Although a revocable trust has many benefits, one of the downsides is that it does not protect your assets from creditors. Assets placed in a revocable trust are still considered your property and therefore remain under your control.

Creditors and other interested parties can seize assets held in a revocable trust even after the individual who created the trust has passed away. Under California law, assets placed in a revocable trust are still considered your property and are fair game for creditors or those who wish to file a lawsuit against you.

Depending on your specific needs and life circumstances, it is always best to consult with a knowledgeable estate planning attorney who can assess which legal options suit your needs.

Do I Still Need a Will If I Have a Revocable Trust?

A common question clients often ask living trust attorneys is whether they still need a will if they have created a revocable trust. Although a revocable trust helps your family members and beneficiaries avoid probate court, it is still advisable to draft a pour-over will as well.

A pour-over will serves several purposes that cannot be achieved with a revocable trust alone. For example, a pour-over will serve as a protective measure, directing any assets that you failed to include in your revocable trust into the trust after your death. Even so, these assets may still be subject to probate, but they will ultimately be distributed according to the terms outlined in the trust document.

Another added benefit of having a will in addition to a revocable trust is that it is the only estate planning document that can be utilized to name a guardian for minor children.

Contact our San Jose Estate Planning Attorney to Learn More About Your Legal Options

Tree of Life Law Firm has extensive experience assisting clients with their estate planning needs. Our estate planning attorney recognizes that there is no one-size-fits-all solution and works diligently to ensure that we create a plan tailored to achieve your specific financial objectives. Our goal is always to ensure that families and heirs can have a smooth transition of asset ownership, regardless of their unique needs.

If you have questions about the benefits of a revocable trust, contact our San Jose law offices in Santa Clara County at 408-539-9858 to schedule a free initial consultation, and we will gladly answer your questions.