Many longtime homeowners created their Living Trust years ago when their children were younger, their financial situation looked different, or before retirement became a reality.But here’s
Is This Your Situation: Thinking about a Living Trust
Dated: November 2 2023
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Is This Your Situation: Thinking about a Living Trust
A living trust (also called a revocable trust) is a legal tool that gives you the ability to maintain control over your assets during life, then dictates the distribution of these assets after your passing. Like all estate planning tools, living trusts have pros and cons.
Pros
1. You’ll be able to avoid probate.
This is probably the biggest factor for most people, especially those who own property in two or more jurisdictions. A living trust can help your heirs avoid probating your will. Probate is governed by state law and can be complicated, pricey and time-consuming. Skipping it can save your heirs time, stress and money. 
2. It protects your privacy
A living trust is a private document, and unlike a will, your living trust records cannot be accessed by the public.
3. Stability for business owners
If you’re a business owners, it can be hard to value your equity interests. That makes a living trust a good tool for business owners wishing to dodge probate.
Cons
1. There are costs associated with living trusts
Sure, you’ll be able to dodge the fees associated with probate, but you may have to pay trustee and other fees.
2. Initial funding and paperwork
When you decide to establish a living trust, you’ll have to transfer your assets into the trust – real property included. This means filing a separate deed transfer for each property you own. With this task, comes record-keeping. Bottom line: be prepared for lots of paperwork.
3. Trustee troubles
A bad trustee is your worst nightmare. Trustees have many duties, and at the end of the day must ultimately act in good faith and according to your best interest.
The trustee for your living trust can be an adult child, a spouse or other person to whom you’re leaving trust assets, an unrelated person you trust or a bank trust department or trust company.
Choose your trustees carefully. If your trustee acts irresponsibly, there won’t be much your heirs can do unless the trustee’s actions are deemed illegal.
As with most everything in life, there are pros and cons to having a living trust. Only you can decide what is best for you.
Tax laws and tax rules are constantly being updated and interpreted. This article contains general information and is not intended as legal advice. Please give me a call for more information on living trusts and other strategies for managing your wealth.
Source: Home Actions LLC
Arminé Ghevian
My goal is simple: a commitment to finding the dream home, purchase, or sale for my clients. With more than 25 years of experience in the real estate industry & the Los Angeles County market, my t....
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