Legal Question in Wills and Trusts in California

The main purpose of a living trust is for your heirs to avoid the expense and time of probating your estate after your death. It is generally recommended in California if your assets (excluding assets held in joint tenancy or with POD or beneficiary designations) exceed $100,000 and/or you own real property.

The previous answer is correct for an intervivos trust. There are other trust forms for other purposes.

Thanks, Timothy- yes, I was assuming the questioner was probably referring to a revocable living trust. Other kinds of trusts may have other advantages (and drawbacks.)

For most people, the main advantage of a properly funded intervivos trust, as the previous attorneys have stated, is avoiding probate. Probate is a time consuming, expensive process. Anyone who owns real property should have a trust. Anyone with greater than $100,000 (based on gross, not net value) in personal property should also have a trust. As Ms. Cusack has said, this $100,00 value does not include anything held in joint tenancy or that has a named, paid on death beneficiary (such as an IRA or other retirement plan). However, in many cases, the joint tenancy property might be better protected as a trust asset, rather than remaining in joint tenancy.

As Mr. McCormack has said, there are other reasons that a trust can be advantageous, depending on the individual or family's situation. For example, there are trust that protect disabled beneficiaries receiving public funds. Trusts can also be drafted for tax reasons, to provide property or benefits directly to grandchildren, for medical planning or nursing home care etc.

For most people and with most intervivos trusts, the settlors (the ones establishing the trust) are the initial trustees and beneficiaries of their own trust. This allows the settlors to maintain control over their own property.