A revocable trust can be used in place of a will to accomplish many of the same targets that you want to achieve through your will, and more. Basically, a revocable living trust is a tool that allows you to hold and distribute all of your assets without any court intervention, or with minimal court intervention. The trust plan will come with a set of terms that must be adhered to.Typically, California clients prefer to have a revocable living trust that helps protect the inheritance and the heirs in the following situations.For instance, you can use a revocable living trust to prevent your spouse from losing assets that you built jointly together in a subsequent divorce. You can use a revocable living trust to protect your children's inheritance from creditors.Use your revocable living trust very effectively to set incentives for children, so that they will not squander away their inheritance. One of the reasons why people run away from the term 'trust' is that they do not want their children to be "trust fund kids." No one wants children who have been handed everything over on a golden platter to lose all drive. You can prevent that kind of situation by adding incentives that encourage your heirs to accomplish certain goals or targets, before they get any funds from the trust. For instance, you can say that you want the children to finish college, or start a business successfully on their own or earn a certain amount of income before they're eligible for the next round of funds from the trust. A trust can also be used to protect any loss of inheritance when the children get divorced.A revocable living trust is in a very effective estate planning tool that is often underutilized. Speak to an estate planning lawyer in Los Angeles about how you can establish a revocable living trust.
