With proper business and estate protection planning, the living trust is commonly used to hold 'select' property and all of your (personal) property "interests". Such interests are usually derived from your ownership of property or real estate (rental units) held or owned in one or more of the entity devices mentioned hereinbelow (or other devices not mentioned herein). Also, the Living Trust can hold such interests in investment accounts or money management accounts. Such investments may be held personally, in the Living Trust, or in an LLC (with its interests held by the Living Trust).
You should have a money manager or investment advisor retained for what we call asset appreciation, growth and liquidity planning. You need to plan your retirement by considering your insurance (life, disability, long term care, etc.) and cash management needs (from investments, and cash equivalents) in the event of disability or death. You must project your liquid or cash equivalent assets necessary to meet your potential taxes upon disability or death, and needs of your beneficiaries. Most persons commonly use the living trust in business and estate protection planning as a central planning device or quarterback. It is part of most business and estate protection plans, as it can avoid probate and act as the directing authority for all or most of your property disposition plans, including certain investments. Although certain investment accounts are considered "POD" accounts may avoid probate (or "payable on demand" accounts), you should coordinate PODs consistently with your estate, business and retirement plans, which includes your Living Trust. For some estates, this device alone is not sufficient as a business, estate and asset protection planning solution. To have maximum effectiveness, it should be used with one or more of the other devices or techniques mentioned hereinbelow.
2. Pour-Over Wills. This device is used in conjunction with your Living Trust. It directs property disposition to the Living Trust to avoid probate. It is intended to be a "catch-all" over property left out of your Living Trust for one reason or another. Each client will generally use one Pour-Over Will.
3. California Advanced Health Care Directive (Durable Power of Attorney). This document is used primarily to direct your attorney-in-fact on how you wish to be cared for in the event of certain illnesses, incapacity, or disability. It is similar to the so-called Living Will. Different states have varying rules on such device(s). For example, California has a statutory durable power of attorney for health care in the form of a Directive called the California Advanced Health Care Directive. Adults and spouses should have an Anti-Schiavo health care directive covering medical decisions, pain and pull the plug issues and final wishes. These matters should also be addressed on behalf of minor children, so medical care providers and the court will have clear evidence of the intent of the parents or guardians in the event they are unavailable. Your children deserve to have all of the same questions asked and answered in the formulation of an estate plan, as you and your spouse do. You should be confident that your nominated guardian will execute or interpret his or her discretion consistent with your intent and directions when it comes to key decisions concerning the life, disability and death of your children. You should leave nothing to chance. The author refers to this as a Kid s Legal