1.Not all assets should be transferred into a revocable living trust. When you meet with our trust lawyer, you can receive clarification about which of your assets might benefit from entering the trust. Our trust lawyer can also help you avoid making costly tax mistakes. Certain types of assets will automatically pass directly to the named beneficiaries without going through probate and therefore do not need to be transferred into the trust. (However, you may wish to name the trust itself as the beneficiary, particularly if you have minor aged children at the time of your passing.) For instance:
a. Retirement accounts.
b. Life insurance policy benefits.
c. Pay-on-death bank accounts.
2. A revocable living trust affords additional Federal Deposit Insurance Corporation (FDIC) protection. As a general rule, a bank account automatically receives up to $25,000 of FDIC protection against losses. If your funds exceed that amount, you can receive more protection if you transfer them to a revocable living trust. Each beneficiary in a revocable living trust receives an additional $250,000 of FDIC protection. The maximum amount of FDIC protection is $1,250,000 so that will protect up to five beneficiaries if each is to receive the maximum protection for each individual. This can be confusing so it is best to discuss these amounts with a Yee Law Group living trust lawyer in Folsom CA if this is applicable to your circumstances.
3. Under some circumstances, a revocable living trust may not be entirely private. Because the assets contained within a revocable living trust do not go through the probate process, the transfer of those assets to the beneficiaries does not become a matter of public record. However, there is an exception to the rule: if an heir contests the estate and takes the trustee to court then the trust document may become part of the court record, and therefore become public.
To learn whether a revocable living trust is right for you, contact our office to schedule a consultation with a Folsom CA living trust lawyer.