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Why revocable trusts are most beneficial when funded

On Behalf of | Jan 15, 2024 | Trusts

There are many ways to protect your California estate. Some people create trusts to carry out estate planning matters. What you place in a trust becomes owned by said trust. By establishing a revocable trust, you have the right to change the terms of your trust whenever you’d like. But a revocable trust serves you best when you fund it throughout life.

Preventing assets from going through probate

While trusts are vital aspects of estate planning, it’s also crucial to have a will. When you have a will, it must go through the state probate process. However, all assets in your revocable trust won’t go through probate. This means having a court involved in fewer of your estate-related matters.

These exclusions can lower your overall probate-related expenses. This benefit also means fewer probate costs funded by your estate, which may extend to more for your beneficiaries. Additionally, your beneficiaries will spend less time going through the sometimes lengthy probate process.

Keeping things private

Wills are in the public domain, which means anyone can see them. Fortunately, revocable trusts can remain private. Nobody can obtain any information about revocable trusts, their owners and beneficiaries. This privacy also makes life easier if your beneficiaries value their privacy regarding your estate.

Protecting assets from creditors

Generally, assets from your estate go towards settling debts before your beneficiaries receive them. However, it’s difficult for creditors to come after assets owned by a trust. This prevention can save your beneficiaries from additional stress.

Setting up a trust does take time. It also means paying expenses and moving assets to this trust. However, establishing a revocable trust puts you in complete control of asset distribution even after you’re gone.

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