What is a revocable trust?

The word “revocable” of a revocable trust means the trust can be withdrawn, canceled, or changed while you are alive. You maintain control and flexibility. The “trust” is like a separate legal entity.

Why avoid probate?

The probate process is timely and expensive. The court must determine whether there is a valid will and enforce it; if there is no valid will, the court must locate heirs and distribute the decedent’s assets. The process involves attorney’s fees (as a percentage of the estate) and administrative expenses.

How does a trust avoid probate?

First, understand that all your property must go through probate when you pass away, except under certain circumstances, such as when you have a named beneficiary on an account. However, when you use a trust, a different entity holds legal title to the assets you transfer to it – not you! The trust lives on, even after your death. Therefore, no probate is required of trust assets.

Does a power of attorney avoid probate?

No. In Nevada and California, a power of attorney automatically terminates at death. Even the durable power of attorney, intended to stay valid if you become disabled, will automatically end at your death.

What assets should I put in my living trust?

That depends on whether you want to avoid probate altogether. If so, then you should likely put everything you have in the trust. Typically, a trust is “funded” with real property and other assets with formal titles (vehicles, savings accounts, stocks, etc.) Title to newly acquired property can also be in the name of your trust. Property such as jewelry, art, and home furnishings must be listed under a “Declaration of Intent.”

Do I lose control of the property I put into my trust?

Absolutely not. A living trust gives you complete control over your assets. You select yourself as the trustee of your living trust, and then you can do everything you did before. Nothing changes except the names on the titles. You even file the same income tax returns.

Is it hard to transfer property into my living trust?

No. In Nevada and California, it’s as easy as filling out a “quitclaim deed.” You can do this yourself or ask an attorney to help you record the records.

What if I’m not the only person on the title of an asset?

You can transfer whatever share you own to the trust without affecting the shares of the others.

What about my property in another state?

Property in another state should be put into the trust as well. If you do not transfer out-of-state property into your trust, your beneficiaries must have a separate probate in each state where you own real estate.