In California, both a revocable living trust and a will are estate planning documents, but they serve different purposes and have distinct features:
- Revocable Living Trust:
- A revocable living trust (also called a “trust’) is a legal document that allows you (the grantor) to place your assets into a trust during your lifetime.
- You can serve as the trustee and manage the assets yourself, retaining full control over them.
- You can also name a successor trustee who will take over managing the trust assets if you become incapacitated or pass away.
- Upon your death, the assets in the trust can be distributed to your beneficiaries according to the instructions you’ve outlined in the trust document, without going through probate court.
- One key advantage is privacy, as trusts are not generally subject to public record, unlike wills which must go through probate, which is a public process.
- Will:
- A will is a legal document that outlines your wishes regarding the distribution of your assets after your death.
- In California, if you die with a will, your estate will go through the probate process, which is a court-supervised procedure for validating the will and distributing assets.
- In the will, you can name an executor, who will be responsible for carrying out your wishes as outlined in the will, including distributing assets to your beneficiaries.
- A will also allows you to name guardians for minor children, specify funeral arrangements, and address other matters related to your estate.
- Unlike a trust, a will only becomes effective upon your death.
Key Differences:
- Probate: A significant difference between the two is that assets held in a revocable living trust typically avoid probate, while assets distributed through a will usually go through probate.
- Privacy: Trusts generally offer more privacy compared to wills because the terms of a trust generally do not become part of the public record, unlike wills which are filed with the probate court and become public record.
- Flexibility: Trusts can provide more flexibility for managing and distributing assets, especially in cases of incapacity, as the successor trustee can step in to manage the trust without the need for court intervention.
In summary, both a revocable living trust and a will are essential estate planning tools, but they serve different purposes and offer different benefits. Consulting with Attorney Diane to find out how a will and revocable living trust will help meet your estate planning needs and goals.