THE MANY ADVANTAGES OF A TRUST
California residents may believe that trusts are only worthwhile for those who are wealthy. However, this is not necessarily the case. An individual may benefit from creating a living trust that may go into effect if that person becomes incapacitated. During that time, a designated person or entity would manage the individual's affairs in accordance with the trust's terms.
Having a trust may be ideal for those who have property in multiple states. This is because it saves surviving family members from having to go through probate multiple times. It may also help an estate avoid probate altogether regardless of what a person may own. Bypassing the probate process may allow assets to get to their intended beneficiaries faster and in a less expensive manner.
If a person is getting married for the second or subsequent time, it may be a good idea to use a trust to help guide assets to their intended beneficiaries. Finally, a trust may be helpful for parents or others who want or need to take care of a disabled family member.
There are many different types of trusts that an individual may be able to take advantage of. Revocable trusts may add flexibility to manage assets while still alive while an irrevocable trust may provide protection from creditors. It may be worthwhile for an individual to consult with an attorney prior to creating such a document. This may help to ensure that it meets a person's estate planning goals. It may also increase the odds that it is written in a manner that meets an individual's goals.