Trustor and trustee enter into an agreement to create a revocable living trust. The purpose of the creation of the trust is to provide for the convenient administration of the assets of the trust without the necessity of court supervision in the event of the trustor's incapacity or death. Other provisions of the trust document include: trust assets, disposition of income and principal, and administration of the trust assets after the death of the trustor.
California Living Trust — Revocable: A Comprehensive Overview A California Living Trust, also known as a Revocable Living Trust or an Inter Vivos Trust, is a legal document that allows individuals to maintain control over their assets during their lifetime while designating how those assets will be managed and distributed after their death. This type of trust is governed by California state laws and offers numerous benefits, such as avoiding the probate process, ensuring privacy, and providing flexibility in managing assets. A Revocable Living Trust in California is created by an individual, referred to as the granter or trust or, who transfers their assets into the trust for management and distribution purposes. The granter retains full control and can make changes, add or remove assets, or even revoke the trust altogether during their lifetime. The trust assets are managed by a trustee, who can either be the granter or any other trusted individual or institution. There are several types of California Living Trusts — Revocable: 1. Individual Trust: Created by a single person who is the sole granter and beneficiary of the trust. The individual retains control over the assets during their lifetime and directs how they will be distributed after their death. 2. Married Couple's Trust: Also known as a Joint Trust or Spousal Trust, this type of trust is established by a married couple who wish to combine their assets into a single trust. Both spouses act as contractors and can make changes or revoke the trust collectively. 3. AB Trust or Marital and Bypass Trust: This type of trust is commonly used by married couples to take advantage of estate tax exemptions. Upon the death of the first spouse, the trust splits into two separate trusts — the Marital Trust (also known as the A Trust), providing income and benefits for the surviving spouse, and the Bypass Trust (also known as the B Trust), which becomes irrevocable and is not subject to estate taxes. 4. A-B-C Trust: This trust structure is similar to the AB Trust but includes an additional C trust, also known as a TIP Trust. The C trust allows the granter to provide for a subsequent spouse while ensuring that their children from the previous marriage ultimately inherit the trust assets. 5. Generation-Skipping Trust: Also referred to as a Dynasty Trust, this type of trust allows assets to pass to future generations while minimizing estate taxes. It can provide long-term asset protection and ensure that the granter's descendants benefit from the trust's assets for multiple generations. Creating a California Living Trust — Revocable offers individuals the flexibility to control their assets during their lifetime and simplify the distribution process after their death. It is important to consult with a qualified estate planning attorney to understand which type of trust best suits your needs and to ensure that all legal requirements are met to establish the trust effectively.California Living Trust — Revocable: A Comprehensive Overview A California Living Trust, also known as a Revocable Living Trust or an Inter Vivos Trust, is a legal document that allows individuals to maintain control over their assets during their lifetime while designating how those assets will be managed and distributed after their death. This type of trust is governed by California state laws and offers numerous benefits, such as avoiding the probate process, ensuring privacy, and providing flexibility in managing assets. A Revocable Living Trust in California is created by an individual, referred to as the granter or trust or, who transfers their assets into the trust for management and distribution purposes. The granter retains full control and can make changes, add or remove assets, or even revoke the trust altogether during their lifetime. The trust assets are managed by a trustee, who can either be the granter or any other trusted individual or institution. There are several types of California Living Trusts — Revocable: 1. Individual Trust: Created by a single person who is the sole granter and beneficiary of the trust. The individual retains control over the assets during their lifetime and directs how they will be distributed after their death. 2. Married Couple's Trust: Also known as a Joint Trust or Spousal Trust, this type of trust is established by a married couple who wish to combine their assets into a single trust. Both spouses act as contractors and can make changes or revoke the trust collectively. 3. AB Trust or Marital and Bypass Trust: This type of trust is commonly used by married couples to take advantage of estate tax exemptions. Upon the death of the first spouse, the trust splits into two separate trusts — the Marital Trust (also known as the A Trust), providing income and benefits for the surviving spouse, and the Bypass Trust (also known as the B Trust), which becomes irrevocable and is not subject to estate taxes. 4. A-B-C Trust: This trust structure is similar to the AB Trust but includes an additional C trust, also known as a TIP Trust. The C trust allows the granter to provide for a subsequent spouse while ensuring that their children from the previous marriage ultimately inherit the trust assets. 5. Generation-Skipping Trust: Also referred to as a Dynasty Trust, this type of trust allows assets to pass to future generations while minimizing estate taxes. It can provide long-term asset protection and ensure that the granter's descendants benefit from the trust's assets for multiple generations. Creating a California Living Trust — Revocable offers individuals the flexibility to control their assets during their lifetime and simplify the distribution process after their death. It is important to consult with a qualified estate planning attorney to understand which type of trust best suits your needs and to ensure that all legal requirements are met to establish the trust effectively.
