California Living Trusts
February 16, 2012
The use of a living trust as a financial planning tool has become quite commonplace. Often titled "The (Family Name) Living Trust" they are often established as a means to avoid having to go through a probate process in the event of the death or incapacity of an owner of the family assets. There are many on-line offers for the documents necessary to establish a trust. However, it is perhaps wisest to use an attorney to draw up the trust documents in order to be sure that it is done correctly. Once the trust is established, the owners of the assets have to deed the assets into the trust. If these assets are not deeded into the trust, they will not have the protections that the trust might offer.
Most of these "family trusts" or "living trusts" are revocable - meaning the trustees can change the terms of the trust during their lifetimes.
It is important to keep your trust documents in a safe place so that they can be easily accessed when necessary. If you have used an attorney to draw them up, the attorney should also have a copy.
When selling a piece of real estate that is one of the assets in a trust, the trustee (seller) will have to furnish escrow and title with documentation that they have the powers necessary to execute a purchase contract. It is usual for escrow to require the seller to sign a notarized statement that gives the name of the trust and the name(s) of the trustees who have the power to sign a purchase agreement. Often the title company will want to see a copy of the page(s) that names the trustee or any co-trustees or successor trustee.
This might be a good time to review your trust documents as laws do change and you want your provisions to be current and useful.
The use of a living trust as a financial planning tool has become quite commonplace. Often titled "The (Family Name) Living Trust" they are often established as a means to avoid having to go through a probate process in the event of the death or incapacity of an owner of the family assets. There are many on-line offers for the documents necessary to establish a trust. However, it is perhaps wisest to use an attorney to draw up the trust documents in order to be sure that it is done correctly. Once the trust is established, the owners of the assets have to deed the assets into the trust. If these assets are not deeded into the trust, they will not have the protections that the trust might offer.
Most of these "family trusts" or "living trusts" are revocable - meaning the trustees can change the terms of the trust during their lifetimes.
It is important to keep your trust documents in a safe place so that they can be easily accessed when necessary. If you have used an attorney to draw them up, the attorney should also have a copy.
When selling a piece of real estate that is one of the assets in a trust, the trustee (seller) will have to furnish escrow and title with documentation that they have the powers necessary to execute a purchase contract. It is usual for escrow to require the seller to sign a notarized statement that gives the name of the trust and the name(s) of the trustees who have the power to sign a purchase agreement. Often the title company will want to see a copy of the page(s) that names the trustee or any co-trustees or successor trustee.
This might be a good time to review your trust documents as laws do change and you want your provisions to be current and useful.
posted by shirley harry at 8:48 AM
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