Logo

The Oakley Law Group

Preserving Your Life's Work for Your Family's Future

(818) 937-2335
Attend An On-Demand Webinar
  • Home
  • Who We Are
    • About Our Firm
    • Attorney and Staff Profiles
    • Speaker Connection
  • How We Can Help
    • Business Owners & Asset Protection
    • Elder Law and Medi-Cal Services
    • Estate Planning
    • Family-Owned Businesses
    • Incapacity Planning and Caregiver Support
    • IRA & Retirement Planning
    • LGBTQ Estate Planning
    • Minor Children & Young Adult Planning
    • Special Needs Planning
    • Trust Administration & Probate
    • Wills & Trusts
  • Seminars
  • Resources
    • Elder Law Reports
    • Estate and Gift Tax Figures
    • Estate Planning Resources
      • Definitions
      • Estate Planning Checkup
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
    • Frequently Asked Questions
      • Estate Planning
      • Incapacity Planning
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medi-Cal Planning
      • Probate
      • Taxes on Inheritances
      • Trust Administration & Probate
    • Newsletters
    • Special Needs Resources
    • Reports
    • Trust Administration & Probate Resources
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Trust Administration & Probate Definitions
  • Reviews
    • Our Reviews
  • Blog
  • Contact Us
Do You Need a Will When You Have a Living Trust?
arrow_downward

Do You Need a Will When You Have a Living Trust?

June 14, 2022 by Steven Oakley

living trustMany people that have not looked into the subject very deeply assume that you do not need a will if you have a living trust. There is some truth to this when it comes to transferring the lion’s share of your assets, but there is more to the story.

Before we explain the details, we will provide a rundown of the benefits that living trusts provide for people that may not know a lot about them.

Efficient Estate Administration

If you use a will to facilitate asset transfers, it would be admitted to probate after your passing. The executor that you name in the document would complete the administration tasks, and the court would examine the will to determine its validity.

There would be a notice posted for creditors, and they would be given time to come forward. Meanwhile, the executor would identify the assets and prepare them for distribution, so appraisals and liquidations will be necessary.

No inheritances can be distributed while the estate is being probated, and it will usually take nine months to three years. Probate expenses can greatly shave down the value of the estate before it is distributed to the heirs, and probate records can be accessed by anyone that has a passing interest or curiosity.

You can create a more turnkey estate administration experience for your loved ones if you use a living trust as the centerpiece of your estate plan. While you are living, you would be the trustee, and you would name a successor to assume the role when the time comes.

The trustee would not be bound by probate supervision. They would be able to distribute assets outside of probate, so the hassles that we described above would be avoided.

Asset Protection

When a will is used, all the assets that comprise the estate would be distributed in lump sums after the estate was closed by the probate court. The inheritors would then go forward with their bequests, and there would be no inherent controls or asset protection.

You do not have to shrug your shoulders and hope for the best in this regard if you use a living trust. After your passing, the trust would be irrevocable, and the beneficiary would not have direct access to the assets unless you provided so.

Since the beneficiary would not be able to tap into the resources, the creditors of the beneficiary would step into the same shoes and be able to access their inheritance.

You can control the nature of the distributions to the beneficiary when you set the terms. For example, you can instruct the trustee to distribute the earnings that are generated by income-producing assets in the trust, or you could provide a certain dollar amount each month.

These are a couple of examples, but you would be able to set any terms that you feel comfortable with when you establish a revocable living trust.

Pour-Over Will and Guardian Designation

Now we can get to the specific point that we want to cover in this post. You may pass away while you are still in possession of some assets that you never conveyed into the trust. To account for this, you should include a pour-over will when you are creating your estate plan.

This type of will facilitates the transfer of these assets into the trust after your death, and this would simplify the estate administration process.

It should be noted that a California estate planning attorney can file a petition to ask the court to allow the transfer of personally held assets into a living trust. The petition would contend that the decedent intended to convey the property into the trust.

Another reason to use a will is to account for guardianship of a minor child or dependent adult. You cannot designate a guardian in a living trust, so you would have to state your guardian designation in a will.

Attend a Free Webinar!

We offer live and on-demand webinars on an ongoing basis, and you will come away with a great deal of useful information if you join us for one of these sessions. There is no charge, but we ask that you register in advance so we can reserve your spot.

You can see the dates if you head over to our webinar page. If you decide to attend, follow the simple instructions to register.

Need Help Now?

If you have decided that it is time to put a plan in place, we can help. You can send us a message to request a consultation appointment, and our Burbank estate planning office can be reached at 818-937-2335.

 

 

  • Author
  • Recent Posts
Steven Oakley
Steven Oakley
Managing Attorney at The Oakley Law Group
Steve is a father of five, a member of the Jonathan Club, veteran of the United States Army and spends his free time dabbling in aviation and supporting several non-profit organizations including, Freemasons of California, Scottish Rite Language Centers, the Burbank Noon Kiwanis Club, Quake Safe Seniors, UCLA Alumni Scholarships, and the Shriners’ Hospitals for Children.
Steven Oakley
Latest posts by Steven Oakley (see all)
  • Is There a California Estate Tax? - January 28, 2023
  • Your Home Value Can Create Estate Tax Exposure - January 22, 2023
  • Three Estate Planning Details You Might Overlook - January 19, 2023

Primary Sidebar

SEARCH

DOWNLOAD OUR FREE ESTATE PLANNING WORKSHEET

There’s a lot that goes into setting up a comprehensive estate plan, but with our complimentary worksheet, you’ll be one step closer to getting yourself and your family on the path to a secure and happy future.
Texting Permission

The Oakley Law Group

2600 West Olive Avenue, 5th Floor
Burbank, CA 91505
Phone: (818) 937-2335
Fax: (818) 450-3886

Office Hours

Monday to Friday : 9:00am to 6:00pm PST

Blog Subscription

Subscribe to our blog to get the latest estate planning news from the attorneys at The Oakley Law Group.
Texting Permission

Footer

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • YouTube
Logo
ATTORNEY ADVERTISING. PAST RESULTS DO NOT GUARANTEE FUTURE OUTCOMES

© 2022 The Oakley Law Group | © 2022 American Academy of Estate Planning Attorneys, Inc. Disclaimer | Privacy Policy