Revocable Living Trust
The sunny San Diegan suffers an oft-neglected need to establish a Revocable Living Trust. The Revocable Living Trust is the sound centerpiece of prudent, preferred estate planning. The Living Trust is an incredibly cost- and time-effective means by which we spare our heirs from uncertainty and maximize their benefits. Now, without further ado, this wills and trusts attorney presents for consideration his concise and precise Living Trust table of topics:
I. The Skinny on the Revocable Living Trust (or: a small sampling of food for thought)
II. Living Trust Mechanics (or: the living trust explained for the mechanically inclined and dis-inclined)
III. Living Trust: Revocability (or: minds change and so do living trusts and wills)
IV. Living Trust: Do I need a Living Trust? (or: Living Trusts for the Homeowner and the Non-homeowner)
V. The Living Trust Package (or: the estate planning bang for your buck)
A primary means of estate planning is creation of a revocable living trust. You can cancel, amend or revoke this important instrument, which you create while you’re (still) living. A trust is a means of bypassing probate, a dear and dilatory debacle (i.e.: an expensive and time-consuming process). Probate is the proceeding wherein the probate court presides over distribution of the dearly departed’s real and personal property; due to inherent costs and complications, probate exacts a terrifically terrible toll. Truly. Probate depletes a decedent’s estate, delays distribution and deprives heirs from inheritance; it postpones opportunity to timely transfer assets. Yet, timely cost-effective writing of a living trust averts that disaster.
In dollars and cents that means this:
Say Papa didn’t pay for a trust (around $1,500). Papa passes; his home’s valued at $500K (that’s San Diego dollars; it implies a modest estate). Sonny wishes to sell passed-away Papa’s property, but sale is stalled a whole year in San Diego’s Superior Court (probate division). When Papa’s place is finally sold, the probate process will have plucked from its proceeds some twenty-six thousand dollars (yes, $26,000). A living trust would’ve spared Sonny that exorbitantly excessive expense. Why is probate so costly? Its costs are calculated as a percentage of property’s value: 4% against the first $100,000, 3% against the next $100K, 2% against the following $100K (up to $1M), etc. Fees are assessed against gross value (rather than equity), which means mortgages don’t diminish probate’s cut. Percentages become doubled upon probate-court appointment of an executor and an executor’s attorney (both entitled to fees).
Papa may have previously preserved that asset (shielding it from judicial liens) by discharging debt in chapter 7 bankruptcy or chapter 13 bankruptcy. Yet, absent an estate plan, we liken Papa’s plight to the predicament of the post player who shoots, but doesn’t rebound; in other words, we wonder where’s the follow-through, Papa? Not to preach, Papa, but your people could’ve kept much more had you placed your living place in a living trust.
The revocable living trust designates a trustee to manage it; that trustee is most often you, the creator or trustor of the trust. This means you neither relinquish nor surrender ownership or management of property. After all, a living trust’s raison d’être is to secure your right to control assets in life and in death. The trust will designate a successor trustee to manage it upon your death or if you become incapacitated (physically or mentally unable to conduct affairs). You appoint a person you trust instead of leaving gaping question marks that beg probate court oversight. Upon your passing, the successor trustee will distribute property to your beneficiaries in accordance with your trust directives; the successor trustee may also retain assets in the living trust for future distribution per your instruction.
What if I make a mistake? One may trust that a revocable trust is, ahem revocable. Revoking (from the Latin revocare, natch) is reversing, recalling, rendering void. Or, if you are not a pirate prone to R-words alone, revoking means taking it back. Because humans arrrrr– I mean are fallible and err, a revocable living trust is the standard; its counterpart, the irrevocable living trust is not favored. Mostly. 
IV. Living Trust: Do I need a Living Trust?
Yes (for the homeowner)
If you’re a homeowner (and your home will pass to heirs), you need a Revocable Living Trust. Creation of a living trust entails transferring title to assets (e.g. your home) from a person to the trust; so the Evergreen Terrace home heretofore titled to Homer becomes the property of The Homer Living Trust 2014. When Homer passes, Homer’s home (that is, The Homer Living Trust home)  bypasses probate straight to Homer’s heirs. As we saw with Papa, this straightforward transfer saves time and money.
If your home or other real property isn’t transferred to your living trust, your beneficiaries will be shortchanged by incurring exorbitant probate fees and suffering severe delay. Like Brad Pitt intones in the (cult film) Fight Club (in addressing newbie would-be fight club fighters, Pitt seeks to weed out all tourists and gawkers): If this is your first night at Fight Club… you have fight. Well, let me put it this way: If you own a home, you HAVE to have a trust.
Yes (for the non-homeowner)
Even if you’re not a homeowner, you need estate planning and may need a revocable living trust. Probate (in California) is triggered by assets valued in excess of $150,000. The San Diegan is sanguine; there’s no promise or guarantee, yet there’s valid optimism that we will acquire a measurable estate by the time we pass (after many golden years). A trust in time saves nine. It sets up the framework for ready inclusion of future assets by way of routine amendment or through the features of a pour-over will.
Reasons for a Revocable Living Trust
Yet, you don’t need real property or sizeable assets to have a living trust. A trust serves the vital interests of parents to minor children; the revocable living trust includes detailed instruction on children’s care, and preferences for guardianship.
Additional compelling causes for creation of a trust abound. Namely your welfare and fulfillment of preferences for health care and money management after death AND during life (remember: it’s a living trust).
These vital matters are encompassed in the Living Trust Package. If your estate doesn’t demand a trust, a similar package (our trademark “Living Estate” Package) affords the same imperative protections provided for within the Living Trust Package (just without the trust). 
The irrevocable living trust, you see spares estate taxes, but the common estate (valued below $5.25 million per person) is exempt from those taxes anyway.
 Or some other spiffy sobriquet; creative minds know a name of a trust needn’t conform to conventional verbiage. Though naming Homer’s trust the “Pink-Sprinkled-Donut Trust 2014” may be intrinsically silly (albeit delicious), it’s still a valid name.
 In the absence of minor children, real estate and meaningful assets, one will still seek the provisions provided for within the Living Trust Package (simply sans the trust itself). The Will, Durable General Power of Attorney and Advanced Healthcare Directive are invariably indispensable elements of sound planning, whether or not you have assets. These instruments are fully provided for within a Living Estate Package planned out to fulfill personal preferences for welfare, health care and money management.
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