Why Most People Consider Setting up a Living Trust
A revocable inter vivos trust, commonly referred to as a "living trust" is created during the settlor's lifetime and that the settlor has the power to revoke while still living. The trust is described as "inter vivos" to distinguish from testamentary trusts which take effect after someone passes away.
People usually consider setting up a living trust in order to avoid a formal probate. A formal probate process generally takes a year and can be difficult for your loved ones. Placing property in a trust could assist you to avoid a formal probate process. Additionally, a living trust is primarily used to manage the settlor's property in the event of the settlor's incapacity. This is a cheaper alternative to a conservatorship, where the settlor can have a trusted person, named as the trustee, manage their affairs during their lifetime.
If you have further questions about living trusts and live in the Los Angeles area you should consult with an experienced Los Angeles estate planning attorney.