Article 2: Revocable Living Trust – “Platinum Standard”

Written by: Robert J. Silverman, Attorney at Law, Silverman & Jaffe, P.C.

Creating a Will is a common, rational and positive objective.  Yet, for Californians (and for those in many other states) who own any real estate and/or have other substantial assets, a Revocable Living Trust (“Trust”) is an extremely helpful succession/legacy tool. A Trust is, in most respects, a "Will substitute".  Even those who have a Trust should, for a number of reasons, still have a Will; however, establishing a Trust can accomplish much more than just having a simple Will.

If you have a fully “funded” Trust (meaning that substantially all of your assets are titled in the Trust) you are able to: a) designate an agent (trustee) to manage the bulk of your financial affairs if you should become incapacitated; b) direct and control the distribution of your assets when you are gone in nearly any way you wish; and c) allow your loved ones to avoid a cumbersome, expensive Probate court estate administration when you are gone.

In addition to the above core  estate planning, those who are extremely affluent may benefit their families dramatically by engaging in “advanced planning”.  This typically involves sophisticated gifting and legacy strategies designed to enable your loved ones and/or charities to receive your lifetime gifts and inheritance in a more tax-efficient manner.  This planning often take the form of establishing various, specialized kinds of irrevocable trusts.