What is a ‘living faith’ first of all? Basically, for different purposes, it is a legal body that you can transfer your properties into, including to prevent probate after you pass away. Also if chosen, another individual may manage the assets in your living trust. The person who maintains the trust is called the settler or the trustor, and the trustee is the person who can manage the trust. A third party, the beneficiary, can be involved if the assets are handled for their benefit. Find additional information at San Marcos Deed of Trust.
The “living” component implies that while the settler is still alive, the trust is in place, which makes it different from a trust established at the time of death with a will. They retain power over the trust because the settler is still alive and can cancel the agreement at any time. The word ‘revocable living trust’ is often used to illustrate this.
In fact, it is very normal for the settler, trustee and recipient to all be the same person. You may create a trust with your own properties, be your own trustee, and then pay your bills with those assets (which makes you the beneficiary). A husband and wife can be co-trustees of a trust for a married couple.
People may be leery of living trusts because they think their properties are being given away and power is being lost. Since they are still in charge of the trust, the assets will no longer be legally in their name.
A contract should provide information about how to proceed if the trustee passes away, and also include an overall asset distribution plan. A trust offers control and consistency so that you can continue to manage and distribute your assets after your death with the same faith.
If your properties are held in trust while you are alive, upon your death, they can still be granted to your heirs outside of probate, which will save your estate a great deal of time and money. That doesn’t mean the right answer for everyone is a living trust. There are also other ways to avoid probate expenditures.
As stated, when it is formed as a revocable trust, the settlor may alter the trust at any time. There is something called an irrevocable living trust (usually used for tax purposes) where once formed, you will not be able to revoke the trust. Before continuing, make sure your attorney knows which one you are interested in.
Colleen Marie & Associates
1470 Powell Rd., Oceanside, California 92056