Because living trusts are not under direct court supervision, a trustee who does not act in your best interests or in a prudent fashion accountable to you or your beneficiaries may, in some cases, be able to take advantage of the situation to a greater extent than would be possible had the trustee been under direct court supervision, which provides such safeguards as court accountings and, in some situations, a bond.

A-B trusts are a type of Living Trust set up by someone who is married (in California, typically one trust for both spouses) and is designed to reduce or eliminate the Federal Estate (Death) Tax that would normally be incurred upon the death of the second spouse to die. Keep in mind that everything has disadvantages, including A-B Trusts. Initial cost, complexity, and maintenance costs after the first spouse dies are some of these.

No. Because you have complete control of all assets in your trust, you are free to manage your Trust in any way. Also, because your Trust is revocable, you have the right to make any changes in it while you are alive and competent.

The formality involved with third parties in having to provide them with a copy of the trust agreement and delays caused in their accepting the acts of the Trustee.

Lifetime Effort. The implementation of a "living trust" is likely to be more time consuming and far more tedious than would be the case with only a will. The single most common defect in the implementation of a "living trust", where the goal is to avoid probate, is the failure to transfer ownership and title of assets into the name of the trustee.

A "Living Trust" is usually a Will substitute. The Trust avoids the delay and expense of probating a Will. Your estate remains confidential, rather than being a public Probate Court record. Tax saving provisions are often included. A "Living Trust" is like having your own corporation. You put all of your assets ? family home, bank accounts, etc. ? into the Trust (the "corporation"). You name yourself as "Trustee" (the "President").

Yes. In most cases a homeowner who has put his or her home in a living trust can usually take out a reverse mortgage. A review of the trust documents would be made by the reverse mortgage lender to determine if anything in the living trust would be unacceptable.

No. The greater the risk of incapacity or death, the greater the need for a living trust. The greater the value of your assets, particularly if they include real estate, the greater the need for a living trust. A young, healthy individual with few assets probably does not need a living trust right now. Nor does the real estate developer who is frequently buying, selling or refinancing his or her real estate holdings want a living trust to hold those assets.

A Living Will deals with concerns about health care decisions. A Living Trust is essentially a will substitute and deals with the management and distribution of your property during your lifetime and at death. A Living Will is a document that has written instructions about the continuation or withholding of life-sustaining medical treatment if you are terminally ill or in a permanent vegetative state.

A "living trust" may provide a structure for the management of a person's assets. This structure could be particularly useful if the trustee has investment expertise, such as a trust company, or the trustee retains investment counsel. The asset management function of a "living trust" can become particularly important if the grantor becomes incompetent or is otherwise incapable of handling financial affairs.

Trusts enable the grantor (the person creating and funding the trust) to determine who receives the money, when they receive it, and what conditions must be met. The pros and cons of trusts depend on whether it is a living trust or a testamentary trust. A living trust is set up during the grantor's life, while a testamentary trust takes effect upon the grantor's death.