Welcome back, to the fourth and final of this four-part series about passing property at death. I'm Greg with the Ashcraft firm.
In the first week talked about passing property through your estate, then we talked about passing property by contract. Last week we talked about passing property by joint tenancy. This week we are going to talk about the pros and cons of passing property by trust.
So what is a trust? There are actually a lot of terms for the type of trust I am talking about here. some people call it a living trust, some people call it s revocable trust and some people call it a revocable living trust. What I am talking about here is a trust that you can change as life changes. This is usually the basis of an estate plan. What does it really mean to have a trust? A trust is essentially a bucket.
This is your trust bucket and let's imagine that you own a piece of real property in the name of you and your spouse. If you are both listed on that piece of real property the surviving spouse is probably not going to have a problem with going to probate. But when the surviving spouse dies, where does that property go? If you created a will, remember from the prior videos, your property will go to probate court. Remember that a will is essentially a letter to the probate judge telling him how you want your property distributed. A trust doesn’t have to go through any of that because the trust is the owner of the property.
You actually transfer your property into the name of the trust. You are the boss of that trust. You are the trustee (as the boss is called). You hold the bucket handle. You control the property within that trust bucket. You also include terms within the trust document that tell the successor bosses of that trust, the successor trustees what you want to happen to your property when you can no longer control those assets because of incapacity. That’s one of the big differences between a will and a trust. This trust exists while you are living and the will only controls after death.
If you have been watching these videos, you will notice that I have switched the order. In all of the other videos, I have been starting with the Pros and ending with the cons, but this time I switched the order because there are so many upsides to passing property in this method, I wanted to talk about those last.
If you have watched the previous videos, you will see that the pros match up with a lot of the downsides that accompany the other methods of passing property.
Thanks for watching. If you would like to set up a free initial consultation, you can call in the number we will provide in a popup, or click on the link and you can email us a form to contact you at some later time.
Thanks again for watching.Share this with friends and family Using the buttons below
Nothing said in this post should be misconstrued as legal advice. The information is situational. You should seek legal counsel as to whether the strategies and consequences apply in your situation. Also, the very basic information given here is based on California law and may not apply in other states.