• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Who We Are
    • About Our Firm
    • Attorney and Staff Profiles
    • Scott P. Schomer Certified As Specialist In Estate Planning, Trust And Probate Law
    • Trust and Probate Litigation: Verdicts and Settlements
  • Services
    • Legacy Planning
    • Probate
    • Asset Protection & Business Planning
    • Trust Administration
    • Trust, Probate and Estate Litigation
    • Estate and Gift Tax Figures
    • Family-Owned Businesses
    • IRA & Retirement Planning
    • LGBTQ Estate Planning
    • Loss of a Loved One
    • Power of Attorney
    • SECURE Act
    • Special Needs Planning
    • Young Families
  • Probate
    • Is Probate Always Necessary In California?
    • Why Hire A Probate Attorney
    • Probate Administration
    • Probate & Estate Planning Savings Calculator
    • Probate Code 850 Petitions
    • Probate Disputes
    • Probate In California
    • Probate Laws
    • Probate Litigation
  • Elder Law
    • Conservatorship
    • Coping with Alzheimer’s
    • Estate Planning
  • Resources
    • Elder Law
      • Elder Law & Medicaid Definitions
      • Elder Law Reports
    • Estate Planning
      • Estate Planning Articles
      • Estate Planning Checkup
      • Estate Planning Definitions
      • Estate Planning Reports
        • Advanced Estate Planning
        • Basic Estate Planning
        • Estate Planning for Niches
        • Trust Administration
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Special Needs Planning Can Protect Benefits
      • Top 10 Estate and Legacy Planning Techniques
    • Free Estate Planning Worksheet
    • Free Seminars
      • Webinars
    • Frequently Asked Questions
      • Advance Health Care Directives
      • Asset Protection
      • California Adult Conservatorship
      • Estate Planning
      • Estate Planning & Remarriage
      • Frequently Asked Questions For Families Without An Estate Plan
      • In-Home Elder Care
      • IRA Inheritance Planning
      • IRA & SECURE Act
      • Irrevocable Trust
      • Last Will and Testament
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Living Trust
      • Probate
      • Social Security & Medicare
      • Special Needs Planning
      • Trusts
      • Trust Administration
      • Wills
    • Newsletters
    • Pre Consultation Form
    • Presentation
    • Published Book
    • 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 Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
  • Reviews
    • Our Reviews
    • Review Us
  • Communities We Serve
    • Los Angeles County
      • Bellflower
      • Cerritos
      • El Segundo
        • El Segundo Probate Resources
      • Hawthorne
      • Inglewood
      • Long Beach
        • Long Beach Elder Resources
        • Long Beach Probate Resources
      • Manhattan Beach
      • Playa del Rey
      • Santa Monica
      • Westchester
        • Westchester Elder Resources
        • Westchester Probate Resources
    • Orange County
      • Anaheim
      • Buena Park
      • Cypress
      • Fountain Valley
      • Garden Grove
      • Huntington Beach
        • Huntington Beach Elder Resources
        • Huntington Beach Probate Resources
      • Los Alamitos
        • Los Alamitos Probate Resources
      • Rossmoor
      • Stanton
      • Seal Beach
      • Westminster
  • Contact Us
  • BLOG
  • Videos

Schomer Law Group, Los Angeles Estate Planning and Elder Law and Elder Law Attorneys

Schomer Law Group, Los Angeles Estate Planning and Elder Law and Elder Law Attorneys

Connect With Us Today (310) 337-7696

Attend a Free Webinar
Home » Trust Administration and Probate » Dispelling the Most Common Myths About the Living Trust

Dispelling the Most Common Myths About the Living Trust

May 24, 2018Trust Administration and Probate

living trust A living trust is a very useful estate planning tool that you should consider including in every estate plan.  However, before you take that step, there are a few common myths regarding living trusts of which you should be aware.  This article will debunk three of the most common myths. For a complete understanding of how this estate planning tool can benefit you, discuss your options with your living trust attorney.

MYTH: A Living Trust Requires You to Give Up Control of your Property

While it is true that creating a trust means that trust will become the legal owner of the property you place in trust.  A common misconception is that you must relinquish all control over that property once it is transferred to the trust.  That is not always the case.

One of the greatest benefits of a living trust is that it is revocable.  That means you will retain the ability to make any changes to the trust and the trust property at any time during your lifetime.  It also means that you also have the authority to manage the trust and use all of the property owned by your trust.

MYTH: A Living Trust Can Help You Avoid Estate Taxes

This is a common misconception.  In reality, revocable living trusts do not help to avoid estate tax liability because they are revocable.  For this same reason, living trusts do not provide asset protection.  That is because the revocable nature of a living trust essentially means the assets are not permanently removed from your estate. If you are looking for asset protection or estate tax relief, you should discuss an irrevocable trust with your estate planning attorney.

MYTH: A Living Trust is All You Need in Your Estate Plan

Despite all of its great advantages, a living trust cannot accomplish everything you need to establish a comprehensive estate plan.  For instance, living trusts do not allow you to name an executor or guardian for your minor children.  To accomplish those tasks, you also need a last will and testament.

What Are the Essential Steps in Creating a Living Trust?

Now that you know the truth about living trusts, there are just a few straightforward steps required to create a revocable living trust.  Your estate planning attorney will initially meet with you to determine what your particular needs are.

From this, your attorney will draft the trust document which contains all of the terms of the trust.  That is the instructions for the trustee to follow.  After drafting the trust document, the property must be transferred or “funded” into the trust.  It’s really that simple if you have the assistance of an experienced trust attorney.

Some of the Advantages and Disadvantages of a Living Trust

The primary purpose most clients have for creating a living trust is to avoid the lengthy and costly probate process.  But, before you decide whether a living trust is the right choice, you should consider both the advantages and disadvantages of creating a living trust. One major advantage is probate avoidance, while a disadvantage is how limited a trust will usually be.

Living Trusts Can Help You Avoid Probate

Living trusts often save time and expense in estate planning.  There are also valuable tax advantages, as well. For instance, a living trust may decrease the amount of estate taxes owed by your estate. Also, because living trusts avoid probate, the terms of your trust document will remain private.

Living Trusts Can Provide Legal Protection for Beneficiaries

Another advantage of living trusts is that it is legally enforceable in court.  Unlike a last will and testament, which only describes how you want your property distributed, a living trust is a binding agreement between you and your trustee to perform certain tasks.  This means that in the event someone challenges a transfer of assets made after your death, the court can easily enforce the terms of your trust document.

One Disadvantage is the Limited Coverage of a Living Trust

One disadvantage of using a living trust is that is generally more limited in its coverage than a last will and testament. That is because a living trust refers only to specific property – the property that was funded to the trust.

Download a FREE estate planning worksheet today! If you have questions regarding estate planning, trust contests, or any other trust administration issues, please contact the Schomer Law Group either online or by calling us in Los Angeles at (310) 337-7696, and in Orange County at (562) 346-3209.

#estateplanning, #schomerlawgroup, #livingtrust

  • Author
  • Recent Posts
Scott Schomer, Estate Planning Attorney
Scott Schomer, Estate Planning Attorney
A graduate of Boston University School of Law, Scott P. Schomer is a frequent lecturer on estate planning and elder law issues, having discussed these important issues on local and national television. A seasoned courtroom advocate, Scott has obtained combined judgments and verdicts in excess of twenty-five million dollars for his clients. Scott has served as a member of the Los Angeles Superior Court Probate Volunteer Panel (PVP Attorney), Probate Settlement Panel and a Judge Pro Tempore. Scott's expertise has been recognized by his peers with such accolades as a life-time membership in the Multi-Million Dollar Advocates Forum, the Five Star Wealth Manager designation, and repeated nominations as California Super Lawyer.
Scott Schomer, Estate Planning Attorney
Latest posts by Scott Schomer, Estate Planning Attorney (see all)
  • Does My Parent Need a Legal Guardian? - June 28, 2022
  • How Do I Pay Estate Taxes? - June 27, 2022
  • Tips for Long-Distance Caregivers - June 23, 2022

Other Articles You May Find Useful

Los Angeles trust attorney
How Can I Encourage a Beneficiary to Use an Inheritance as Intended?
Can a Trustee Be Held Personally Liable for Mistakes Made When Administering a Trust?
Los Angeles trust administration attorneys
Trust Administration – A Checklist for the First-Time Trustee
Los Angeles trust attorneys
What Type of Trust Is Right for You?
Los Angeles trust attorneys
Can I Be the Trustee of the Trust I Establish?
Los Angeles trust attorneys
Why A Will Is Still Necessary If You Have a Family Wealth Trust

Primary Sidebar

Schomer Law Group, Los Angeles Estate Planning and Elder Law Attorneys

Schomer Law Group

FREE Estate Planning Worksheet

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

Testimonials

Client Review
July 29, 2020
    

We need to update our Living Trust and attended Schomer Law Group’s seminar. Afterwards we made an appointment and were impressed by the attention Scott Schomer and Liran Aliav gave to our case answering all questions and making suggestions how to minimize the estate tax. All the office staff is very friendly and we highly recommend Schomer Law Group.

Frank & Jutta R
Client Review
July 29, 2020
    

Mr. Schomer does an amazing job at explaining all the intricacies of establishing a trust. He and his team help you every step of the way so you always know what to expect and what you are preparing for. Best education you can get and the best gift you can give your family.

Paula M.
Client Review
July 29, 2020
    

We put off getting a trust for years. After attending a seminar with Scott Schomer we realized that the time had come to get a trust. We were given very good reasons for why we should get a trust. No pressure, just the plain facts. We are very relieved and happy to finally get our trust. Scott and Cesar were very knowledgeable, helpful and listened to our ideas of what we had to say. Any questions that we have now and in the future they are available to assist us to solve them. I recommend the Schomer Law Group and I wish we knew about them years ago.

Phillip G.
Client Review
July 29, 2020
    

When you’re presented with an invitation to attend in a mailer, you may have reservations, this was a truly gift!! My wife and I were educated and guided through the process of creating a family trust.
Both of our parents had attorney’s that “worked” with wills/trusts, but came up short. Fortunately, the Schomer Law Group was there! This is a group of attorney’s that only specialize in estate planning, law, and financial advice, so you know you’re getting expert and personalized advice. This is the best money we’ve ever spent!! Thank you!

Bob L.
Client Review
July 29, 2020
    

We knew we had to update our 10 year old ( 20 page ) trust. After several detailed meetings, Liran and Cesar produced a large ( 300 pages + ) highly detailed trust document that we have used to make sure our family estate is well managed and clearly understood.
They were all very helpful in answering myriad questions and explaining all the various options…

We would strongly recommend the Schomer Law Group to anyone with an estate of even modest means, to assure proper planning…

Bob S.
Client Review
July 29, 2020
    

We had contemplated updating our will and starting a trust for a number of years. After attending a talk by Scott Schomer we realized we were long overdue and the potential downside of not having our affairs in order was significant. Scott and his excellent team made the process simple and seamless. They were great listeners, addressed all our concerns and even pulled and processed all the paperwork from our financial institutions. If you are looking for assistance with estate planning, wills and trusts, we highly recommend Schomer Law Group.

Robert F.
Client Review
July 29, 2020
    

Very competent & informative – friendly atmosphere – ready to answer the most mundane questions – relaxed.

Joan S.
Client Review
July 29, 2020
    

Mr. Schomer was excellent in getting our family trust and estate affairs in order. My husband and I had put off doing this and Scott really made the process easy! He is very passionate in making sure his clients get all that they need and we really appreciated it. I would highly recommend him and look forward to the many years he will be available to assist our family.

Kim

Follow Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube
  • Instagram

Blog Subscribe

  • This field is for validation purposes and should be left unchanged.

Office Address

El Segundo
222 North Pacific Coast Highway., Suite 130
El Segundo, CA 90245
Phone: (310) 337-7696
Fax: 310-337-1277

See Larger Map Get Directions

Office Hours

Monday9:00 AM - 6:00 PM
Tuesday9:00 AM - 6:00 PM
Wednesday9:00 AM - 6:00 PM
Thursday9:00 AM - 6:00 PM
Friday9:00 AM - 6:00 PM

Footer

  • Advantages of Working With Our Firm
  • About The American Academy
  • Disclaimer
  • Privacy Policy
  • Sitemap
  • Contact Us

Schomer Law Group

Connect with Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube
  • Instagram

footer-logo
© 2022 American Academy of Estate Planning Attorneys, Inc.

Schomer Law Group

Attorney Advertisement.

© 2022 American Academy of Estate Planning Attorneys, Inc.