Knowing how to utlize a living will or living trust can be very helpful as part of your elder care plan.
Legal issues like trusts and wills can be confusing. What’s a living trust and how does it help you protect yourself?
Well here goes…
A living trust is basically a legal document that partially substitutes for a will. Within your trust, your assets including your home, bank accounts and stocks are put into the trust and would then transfer to your beneficiaries when you pass away. There are different kinds of living trusts- irrevocable and revocable. A revocable trust can be changed at any time by the person who created it. An irrevocable trust cannot.
Your Living Trust Agreement:
• Says who the trustee is or the person that has the legal rights to manage and control the assets in the trust.
• Instructs the trustee to manage the trust’s assets for your benefit during your lifetime
• Names the beneficiaries
• Gives guidance and certain powers and authority to the trustee to manage and distribute assets
A living trust can be an important part of your estate plan. You will still need a will however to ensure your assets transfer easily. A living trust can however help ensure that your assets will be managed according to your wishes, even if you become unable to manage them yourself.
Learn more by consulting a legal expert at California Elder Law Center. Visit www.calelderlaw.com or call (562) 627-9600.
