If you own property in California, it may be a good idea to add a living trust to your estate plan. This is because you can hold the property outside of your estate, which means that it likely won’t be subject to probate. Furthermore, if you become incapacitated, another person can manage trust assets on your behalf. Finally, putting assets in a trust may make them harder for creditors, the government or other entities to seize, particularly for those that are or may be receiving Medi-Cal during their lives.
Why you want to avoid probate
Avoiding probate may be in your best interest because it can be a lengthy and expensive process. Furthermore, this type of proceeding is open to the public, which means that anyone interested in the details of your estate plan can access them with ease. By avoiding probate, you get to transfer assets in a quiet, timely and affordable manner after your death.
Almost anyone can serve as your trustee
A friend, family member or estate planning attorney can oversee your assets if you are unable to do so on your own. If you are still of sound mind, you can serve as both the trustee and beneficiary of a living trust. This means that you retain control over your assets while helping to protect them in the event of bankruptcy, divorce or another significant life event.
How does a trust protect assets from seizure?
As a general rule, creditors cannot take assets that are held outside of your estate. In addition, property held outside of a marital estate is generally not subject to property division rules. It is crucial to note that a judge could rule a trust invalid if he or she determines that it was created for the sole purpose of defrauding another person or entity.
An attorney may provide information that could help you decide whether a living trust should be added to your estate plan. A lawyer may also be able to help you create this type of document and ensure that it’s structured in accordance with state law.
If you have any questions about this, please feel free to reach out to us (707-681-5851 or [email protected]m) or set up a complimentary consultation at your convenience by clicking on the following link: https://MyNapaLawyer.as.me/