Creating a trust is one way a parent can continue to help their children and grandchildren after passing away. However, in some circumstances, it may not be in the best interest of you or your child to leave them a lump sum of money with no restrictions. An adult incapable of managing his or her own money, or one who has a history of making poor financial decisions, may benefit from having conditions placed on trusts created with him or her in mind. Getting a revocable living trust is one way you can protect your beneficiaries from themselves.
Prevents Probate Trouble
The process of probate is something that is notoriously time consuming and can cause substantial problems for your beneficiaries. If your heirs are dependent on you for financial support, waiting several months could cause major problems. Disagreements over assets, confusion over your wishes, and basic lack of experience managing an estate can make a stressful situation much more difficult. When a revocable living trust is established, if you were to pass away, your successor would handle things in a manner similar to if you had become incapacitated, distributing assets according to your wishes without supervision.
Gives You Control
Having a revocable living trust allows you to keep some control over your assets. As the trust maker, you are able to undo the trust and reclaim your assets at any point. If your child announces plans to use the money in a manner that you feel is irresponsible or unsafe, you have the option of diverting the income to another beneficiary. Creating a revocable living trust allows you to set aside money for your children while allowing you to act without interference if you become concerned over how the assets are being used.
Assets Can be Used
One concern all parents have when setting up any type of trust is that their children will need the funds earlier than anticipated. The parent of a child who often makes a rash decision or ends up in financially precarious situations may be especially concerned about diverting assets to a trust. Fortunately, the money or property placed in a revocable living trust can be used for various purposes without requiring a great deal of work to change asset distribution. You will be able to sell assets or use money set aside to help your child pay for medical expenses, legal expenses, or other financial issues that occur prior to your incapacitation or death.
Discuss Your Needs with an Attorney
Setting up a revocable living trust is an option that is underutilized by many. Though it is not right for every situation, there are many advantages to establishing a revocable living trust. If you are unsure about using a living trust, contacting a trust administration lawyer is the best way to find out if the option is right for you. The attorneys at MMZ Law understand the concern that adults have for their children and other beneficiaries. We are able to help you determine what estate options are best for your unique situation. Contact us today to set up a private consultation at our conveniently located Claremont, California office.
BROUGHT TO YOU BY:
MMZ LAW, A PROFESSIONAL CORPORATION
341 W. 1st St. Suite 100
Claremont, CA 91711
MARIVEL M. ZIALCITA is the founder of MMZ LAW, A Professional Corporation, where she practices in the areas of Elder Law – Medi-Cal Planning Asset Protection, Trust & Estate, Special Needs, Conservatorship, Trust Administration, & Probate. Ms. Zialcita is a frequent speaker on trust and estate matters and holds memberships in the State Bar of California, Trust and Estate Section, The San Bernardino County Bar Association, Wealth Counsel and Elder Counsel. She currently assists in the pro bono legal services program at the James L. Brulte Senior Center in Rancho Cucamonga, California. She is based in Claremont but assists clients throughout Southern California.
This information is educational information only and not legal advice.