Revocable living trusts are quite popular for many people in estate planning. These trusts are set up and operate while the grantor is still alive and can help avoid probate court after the grantor dies.
California residents who are interested in planning an estate may have questions about incorporating a trust into their preparations. Knowing what trusts are available and which ones work best in certain circumstances makes the choice easier.
California residents who wish to donate their estate to a charity may be interested in learning how a charitable trust works and how it may benefit them. Charitable trusts, as outlined in the Internal Revenue Code, are non-exempt trusts exclusively made for charitable interests and that are entitled to a charitable contribution deduction allowance. Unless charitable trusts meet the qualifications of a public charity status, the IRS considers charitable trusts to be private foundations.
California residents might be interested in a recent article about whether a will or a revocable trust is the better choice in estate planning. The article says that before deciding what process to use, an individual should consider the people and entities that will receive those assets.
Many individuals sometimes make the mistake of relying solely on wills or not doing estate planning at all. Wills are subject to probate and therefore the attendant public scrutiny of court documents. By setting up a revocable trust, actor and California resident Robin Williams prevented his family from having to deal with probate, which can be a long and unpleasant process. The terms of trusts can be kept private as well as any challenges or disagreements.
California residents who are looking into estate planning may be interested in one type of trust that can help to avoid probate while giving the person control of their money during their lifetime. This trust, however, is not without its drawbacks.
Residents of California nearing the age of retirement may be wondering how they should arrange for their property and assets to be passed on in the event that something happens to them. A revocable trust may be a good way for individuals to provide for the distribution of their assets in the event that they become incapacitated, and the trust may even make it easier for those people to draft their wills.