Revocable Trusts

A revocable trust is the foundation of most estate plans.  Revocable trusts are very flexible because, as the name implies, they can be revoked or amended anytime during the lifetime of the person who created the trust (known as the "settlor").  The property held in the name of the trust is not subject to probate administration, which can be time consuming and expensive.  In addition, married couples and registered domestic partners may be able to reduce estate taxes through the use of a "split" trust, allowing the surviving spouse or partner use of the deceased spouse or partner's assets while preserving the deceased spouse or partner's estate tax exemption.

Although a revocable trust does not provide asset protection to the settlor or settlors, the assets funded into the trust can be protected from the creditors of beneficiaries of the trust after the death of the settlor or settlors.  A revocable trust can also provide additional tax savings through the use of generation skipping trusts, which can shield assets from generation skipping transfer tax.

Holding assets in a revocable trust may also eliminate the need to establish a conservatorship of the estate should the settlor ever become incapacitated.  Instead of petitioning the court to have the settlor declared incapable of managing his or her affairs, which is expensive, embarrassing, and often emotionally difficult, the trust can provide that another person manage the trust assets for the benefit of settlor for the remainder of the settlor's lifetime.

Francis A. "Nick" Jones - Attorney At Law
5150 East Pacific Coast Highway, Suite 200
Long Beach, California 90804
Phone: (562) 346-3292  Facsimile: (562) 346-3293