Young families in California may wonder when to begin planning their estates. With many options and tools that are available, placing your money in a revocable trust provides peace of mind. A trust dictates how to distribute your accumulated wealth in the event of your death. Having a revocable trust allows you to change provisions of the trust as you age, which ensures you have a plan for how to transfer your estate to beneficiaries.
Getting started early with a revocable trust
When you have a family to take care of, estate planning offers solutions to help you protect your family even after your death. Using a revocable trust offers a good option for those who are in the early stages of their adulthood. By using a revocable trust, you can alter or cancel provisions, and your beneficiaries can avoid probate court. Minor beneficiaries also avoid guardianship and conservatorship proceedings.
Getting your estate plan in order ensures when you pass on, your family can better understand your wishes. With a revocable trust, your family doesn’t have to know about your wishes until after you die. The trust maintains your privacy and upon death, it becomes irrevocable.
Periodic reviews and updates
Whether or not you choose to include a revocable trust when you first prepare your estate plan, all of the component documents should be reviewed at least once a year to ensure that they are current. In addition, you might want to revise one or more of its components upon the occurrence of certain life changes, including a divorce or the birth of a child.