Items Held Outside of the Living Trust
Although the single
individual has founded a living trust and placed all of
his or her assets in it by titling those assets in the trust's
name, this does not eliminate that person's need for a will.
The creator of the trust will invariably have assets outside
of the trust, and the inheritance of those assets needs to be
assigned. The individual's will can provide for the distribution
and assignments of those assets.
Some financial assets, such as checking accounts and
small bank or credit union accounts, are normally held
outside of the trust, and the distribution of those
assets is usually covered by the individual's will.
Other assets, the nature of which does not permit them
to be included in the living trust, also need to be
handled by the will. Assets of this type include jewelry,
household furnishings, family heirlooms, motor vehicles,
and the like. Physical possessions such as these whose
cumulative value is under $100,000 are exempt from probate
in California, but their disposition needs to be included
in the individual's will.
If the value of the assets in the single individual's will is
over $100,000, then a probate
proceeding must be held.
A typical single individual's will normally leaves automobiles,
furniture, and other valuable possessions to his or her children
if they have any. However, if a person has established a living
trust, the will dictates that all of the assets be left to the
living trust. This type of will is called a "pour-over"
will, since the assets are "poured" into the living
trust.
Those assets added to the trust upon the originator's death
will then be distributed by the successor
trustee in accordance with the provisions of the living
trust along with those assets the trust already holds.
For additional information, please contact THE MAMOLA LAW FIRM at (800) 440-5294. |
