If you are living in the San Diego area, you would want to make sure that your assets are in their rightful places. Establishing a living trust -- a type of trust created during a person’s lifetime -- is a key element to realize that goal. A living trust is an arrangement in which a person or entity takes care of assets for someone else’s benefit.
Here’s why a living trust is important in San Diego:
It helps avoid the complex process of probate in the area. Why you would not want to undergo the probate process? The main reason is to avoid unnecessary expenses that come along with it; and, certainly, to reduce the taxes -- not to mention the tedious works that require court supervision and/or approval such as selling real estate (as per Cal. Probate Code § 7261).
The benefit of privacy. Probate is a public process. And since it is public, theoretically, anyone can go a probate court when a person dies and check out his estate file. In other words, anyone who is interested in your personal information -- your relatives’, beneficiaries’ -- may have an easy access to it. Therefore, if you want to keep your personal affairs private, establishing a living trust is the way to go.
The advantage of easy delegation of authority in case of incapacity. This is another compelling reason why a living trust is important in San Diego. Of course, you would want to optimize the benefit you can get from your assets in your lifetime. But what if you do no longer capable of taking care of your assets? (which happens most especially with old age) With a trust, a revocable living trust in particular, it allows your successor trustee to take over whenever you resign or become incapacitated. There is generally no interruption in the management of your assets, not to mention that there is no court supervision.
Offers protection versus creditors. Yes, a living trust offers a level of protection from creditors; you can give your assets to your intended beneficiaries and protect those assets from your beneficiaries’ creditors.
Have more questions about why a living trust is important in San Diego? Call us today at (858) 558-1191.