Yee Law Group focuses on providing quality legal services for those in the Folsom, California community who wish to plan their estate. A revocable living trust is an effective way to avoid the stress and costs associated with probate. It can also help protect your family’s privacy, unlike estates whose assets must pass through probate and the information about those assets then becomes public.
If you would like to provide peace of mind to your loved ones as well as to yourself, contact our living trust lawyer to schedule a consultation. Yee Law Group proudly serves the Folsom CA community and we look forward to meeting your legal needs as well.
If you are unfamiliar with the nature of a revocable living trust, it is a legally binding document that authorizes the creator of that trust (the grantor) to specify a trustee who will hold the title to the grantor’s assets within the trust and manage them. The primary trustee can be the grantor or another individual of their choice. The grantor can make changes to the trust at any time, unlike an irrevocable living trust.
When it comes time to distribute the trust’s assets to the grantor’s heirs, the process can be much faster and cheaper than the process of distributing assets using a will, though this is not always the case if the assets can be excluded from the probate process. Determining what estate options are optimum for an individual based on the nature and value of their assets is key, and this is one of the services provided by a Folsom CA living trust lawyer.
Here are three facts about revocable living trusts that you may not know:
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.