Drafting Revocable Trusts – What are the Benefits?

Establishing a revocable trust for each and every client is not warranted. But for many clients, revocable trusts do offer some distinct benefits over a will and will be appropriate. Here are a few to consider:

Avoids Probate.  Save costs and fees. Less of an issue in states with streamlined probate procedure.

Out of State Property. Avoids ancillary probate if settlor owns property in more than one state.

Privacy.  But less privacy than previously with notice requirements of Probate Code Sec. 16100.

Incapacity Planning. At incapacity, the trust will  provide for the orderly succession of the trustee position without the requirement of a court proceeding , e.g., guardianship or conservatorship.

Asset Management. Provides orderly management of a settlor’s financial affairs.

Ease of Management. Assets can be managed and invested by another person for settlor’s beneficiaries.

Certainty. Provides certainty in administration for client owning property in several states (e., can specify that California law applies).

Retention of Community Property Benefits.  May retains CP character of marital assets if owner moves to non- community property state.

Separate Property. Can be useful to segregate separate property assets of spouses (i.e., before 2nd marriage).

Hope this is useful –



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