What is a Living Trust? By: Vicki Rubin-Howton, Attorney at Law

A living trust can be an important part-and in many cases, the most important part-of your estate plan. It is a written legal document that partially substitutes for a will. With a living trust, your assets (your home, bank accounts and stocks, for example) are put into the trust, administered for your benefit during your lifetime, and then transferred to your beneficiaries when you die.

Most people name themselves as the trustee in charge of managing their trust’s assets. This way, even though your assets have been put into the trust, you can remain in control of your assets during your lifetime. You can also name a successor trustee who will manage the trust’s assets if you ever become unable or unwilling to do so yourself.

Generally, a living trust is a revocable trust (sometimes referred to as a revocable inter vivos trust or a grantor trust). Such a trust may be amended or revoked at any time by the person or persons who created it (commonly known as the trustor(s), grantor(s) or settlor(s)) as long as he, she, or they are still competent.

Your living trust agreement:

• Gives the trustee the legal right to manage and control the assets held in your trust.
• Instructs the trustee to manage the trust’s assets for your benefit during your lifetime.
• Names beneficiaries (person/charitable organization) who receive your trust’s assets when you die.
• Gives guidance and certain powers and authority to the trustee to manage and distribute your trust’s assets.

The trustee is a fiduciary, which means he or she holds a position of trust and confidence and is subject to strict responsibilities and very high standards.

Vicki Rubin-Howton, Attorney at Law
rubinlaw@sbcglobal.net
Office: 714-541-2004
Cell: 949-939-0896

DISCLAIMER: This site and any information contained herein are intended for general informational purposes only and should not be construed as legal or tax advice. Seek competent legal counsel for advice on any legal matter. Courtesy of the State Bar of California.