Have you set up a living trust? Yes? Great! Now does your living trust have a Schedule A? Yes? Even better!
Next question -- does the Schedule A provide an up-to-date listing of all assets that are titled or vested in your living trust?
Does it include all real estate (real property) you own? Does it include all bank accounts that your attorney advised you to vest into your living trust? Does it list all corporations or other business interests that you may own? Does it include all manner of other financial products that you may own including bonds, stocks and annuities for which the living trust is to own?
Your Schedule A plays two very important roles in your estate plan.
First, it provides written evidence of your intent to vest the listed assets into your living trust. If, for some reason, an asset is not actually vested in your living trust, there are provisions within California law where an attorney can obtain a court order absent probate to have that wayward asset vested in your trust by court order. It is called an Heggstad Petition named after the case law that provides the legal authority.
Second, it provides a map of where the successor trustee is to go to locate your assets if you become incapacitated or pass away. If you have additional assets beyond what should be in your living trust, you will want to include this information in your estate planning materials to again assist the successor trustee.
If this all sounds like legal mumbo jumbo, be sure to consult with your own attorney about these things and ensure that your Schedule A is up-to-date along with the rest of your estate plan.
