Beneficiary Rights of a Living Trust in California

A California living trust is a legal tool set up by a person (the settlor) to hold his property for the benefit of a beneficiary. A trustee is appointed in the trust to administer the trust. Unlike other types of trusts, in a living trust the settlor, trustee and beneficiary can all be the same person.

Right to Use the Property

A living trust allows the beneficiary the use or enjoyment of the property (usually money) of the trust while the trust is in existence. The settlor does not have to die before the assets of the trust can be used.

Right to Avoid Probate

When a settlor's assets or property are all tied up in a living trust when she dies, she technically owns nothing in her name upon her death. In California, this means the estate does not have to go through probate and the property or assets can pass directly to the heirs.

Rights of Control

If the settlor is also the beneficiary he can control how the property or assets of the trust are spent, sold or transferred during his lifetime and after his death. He can control how his heirs, or future beneficiaries, spend the money from the trust in many cases.

Tax Benefits

Because a California living trust allows the estate to avoid probate, the estate can also avoid many of the taxes associated with probate. A living trust can also reduce income taxes in some situations.

References

• Law office Stephen Gruber: California Living Trusts
• Superior Court California County of Santa Clara: Living Trusts