QUESTIONS AND ANSWERS
DO I LOSE CONTROL OF MY ASSETS IF I PUT THEM INTO A LIVING TRUST? NO. You can buy, sell, rent, manage, add assets, and do anything else with your property that is in the Living Trust the same as if you did not have a Living Trust. You will find no differences in day to day life.CAN I WITHDRAW ASSETS FROM THE TRUST AFTER IT IS CREATED? YES. You can withdraw assets, and do anything else with your property that is in the Living Trust the same as if you did not have a Living Trust. You will find no differences in day-to-day life. IF I TRANSFER MY REAL ESTATE TO MY LIVING TRUST, WILL MY REAL ESTATE TAXES GO UP? NO. Transfers of property into a Living Trust are specifically exempted from an increase in the real estate taxes and from paying the transfer tax at the time of recording.I OWN ONLY A PART OF SOME REAL ESTATE, CAN I TRANSFER MY SHARE INTO MY LIVING TRUST? YES. You can transfer your share into your Living Trust without changing the shares owned by others in the real estate.DO I HAVE TO PUT ALL OF MY ASSETS IN THE LIVING TRUST? YES & NO. While you really do not have to put all of your assets in the Living Trust, property not in the Living Trust must (with few exceptions) go through probate proceedings. There are many complex considerations regarding "funding" of a trust and any decision not to do so. There are tax implications -- which can affect the decision and individual advice is required.DO I NEED TO TELL THE ATTORNEY OF ALL OF MY ASSETS? Yes. The attorney cannot properly advise you if you do not fully disclose your assets. Remember, however, your privacy is assured by the attorney-client relationship and the mandatory privilege which prevents us from disclosing to others what you tell the lawyer.DO I NEED A TRUST IF THE VALUE OF MY ESTATE IS LESS THAN THE EXEMPT AMOUNT? YES. You need a Living Trust to avoid probate if you own real estate OR if the value of your estate is more than $100,000.CAN I CHANGE THE TERMS OF THE TRUST? YES. While you are alive and competent, you can change the terms the Living Trust. In fact, you can terminate it at any time you desire.CAN I NAME A SUCCESSOR TRUSTEE AND BENEFICIARIES WHO LIVE OUTSIDE OF CALIFORNIA? YES. There is no limitation as to where either your Successor Trustee or Beneficiaries live. They may even live outside of the United States.IF I MOVE TO ANOTHER STATE, IS MY LIVING TRUST STILL VALID? YES. You may move to a different state within the United States. Not only that, but you may move to any common law country in the world and the trust will be valid. This means you can move to such countries as Canada, New Zealand, and Australia.IS MY LIVING TRUST RECORDED? NO. One of the great advantages of the Living Trust is that ft is a completely private document It is not recorded, and no one needs to see it (other than the Successor Trustee after your death). While some documents (such as a new deed to any real property) may need to be recorded, the trust itself need not be recorded. [Some attorneys will record an "Abstract of Trust" or similar document. While we hesitate to criticize other attorneys, we fail to see the advantage of such a recorded document. We do provide such an abstract; but, since its use is normally not with respect to real property, recordation is of little benefit and does add an element of cost which seem to us unnecessary. Nevertheless, recording of an "Abstract of Trust" is one option which is available.]IS THE LIVING TRUST SOME SORT OF “LOOPHOLE” THAT THE GOVERNMENT WILL CLOSE DOWN? NO. The Living Trust comes to us from a long history dating back before the 12th Century in England. The government has no interest in having your estate go through the probate proceedings or a conservatorship. In fact, these proceedings only create busy work for the court system. Living Trusts actually make limited court resources more available to attend to the true needs of the justice system. Recent history of Congressional action indicates our Congress agrees that trusts are important estate planning devices to be promoted rather than restricted.IS IT DIFFICULT TO TRANSFER MY ASSETS TO MY LIVING TRUST? NO. All of your assets (except IRAs, KEOGHs and other pension plans) can be owned by you as trustee of your Living Trust. The transfer of ownership “to the trust” is not complex and can usually be done quickly.CAN MY SPOUSE AND I TRANSFER BOTH OUR SEPARATE AS WELL AS OUR COMMUNITY PROPERTY INTO THE LIVING TRUST? YES. All of your assets should be transferred into your Living Trust. When this is done, it need only be made clear in your record keeping which is separate and which is community.IS A LIVING TRUST ONLY FOR THE RICH? NO. A Living Trust can help anyone who wants to avoid the mess of probate proceedings.IS A LIVING TRUST PROPER FOR A SINGLE PERSON? YES. A single person is anyone who is not married. That includes divorced, widowed, or never married. If you, as a single person, own real estate OR own more than $100,000 in other assets, you need a Living Trust to avoid the mess and expense of probate. A Living Trust does that perfectly.YOU TOLD ME THE ADVANTAGES. ARE THERE ANY DISADVANTAGES OF A LIVING TRUST? NO, not really. Because you have total control of all of your assets, you are free to manage them any way you please. If, for some reason we cannot think of now, you decide that you do not want the Living Trust, it may be terminated at any time. If you in any way distrust (or wish to add an additional layer of assurance) the successor trustee, a bond can be required or a co-trustee appointed, or even a corporate (professional) trustee can be selected as the sole trustee or to act in concert with a friend/family member co-trustee.