What is the Role of a Trust in Estate Planning?
The estate planning process has many facets. It may start with having a discussion with your family or an event occurred that makes you think about your own affairs. How do you want to transfer your assets, address estate taxes, provide for the future of your minor children, children with substance abuse problems, pets or charitable interests when you are no longer here? Do you need an estate planning document such as a trust in your estate plan? Let our experienced estate planning attorneys answer your questions and provide options so you can make informed decisions.
Estate planning includes creating legal documents with which a person can safeguard their financial decisions while alive by establishing a trust and an advanced health care directive for your medical decisions. Estate documents such as a trust or will can make it possible to control the distribution of assets after a person dies.
Depending on your financial situation, in particular if you own real property, creating a trust may be a critical part of your estate plan. The role of a trust is to give you control – and privacy – for managing your assets while you are alive, transfer of assets when you die and to avoid unnecessary estate taxes.
Trusts are sensible tools used in estate planning to protect hard-earned assets. Trusts can help safeguard the legacy that you would like to pass onto your beneficiaries. As their most basic benefit, trusts can shield California residents from conservatorship proceedings and probate. At The Probate House L.C., we have decades of experience assisting clients with creating and effectively transferring their assets into their trusts.
Asset Protection And More: The Benefits Of Establishing A Trust
One of the primary benefits of a revocable trust, also known as a revocable living trust, is to avoid the lengthy probate process after you die. A revocable living trust is similar to a will, it transfers your estate to your beneficiaries of choice. Some Californian residents prefer living trusts over wills because such a trust allows for you to make updates, manage your assets while you are alive as well as transfer assets upon your death without the probate process. In addition, many prefer the higher level of privacy of information that is not possible during the probate process through the courts where many documents are public records.
A revocable living trust will have a trustee who will manage the assets. You can name yourself the trustee until you become incapacitated, giving you control over the assets. The trust will also list administration of the trust’s assets after death. You may provide for personal assets distribution during your incapacity or prior to your death. Our lawyers are experienced in revocable living trusts and can guide you through the process.
Safeguard Your Legacy: Meeting Your Goals And Desires
Each person has their own ideas of how to – and whom to – distribute their assets upon their passing. Each person also has their own views on how they wish to be cared for in the event they are no longer able to care for themselves. Some may desire to preserve the family home for their children. For example, you may wish to provide that a child, or children, can live in your home in the event it becomes necessary that you are placed in a nursing home or skilled nursing facility during your incapacity.
There are many distinct types of trusts to accomplish your objectives. Trusts can be revocable or irrevocable during your lifetime or become irrevocable only after your death, depending on the type of trust you want. We have experience drafting various trusts, such as:
- Single Settlor Trust
- Disclaimer Trust
- Continuing Trust
- An A/B or A/B/C Trust
- Remainder Trust
- Exemption Trust
You may wish to create a trust to hold and/or control the use of the funds after distribution so you can pay for the care and support of the beneficiaries during incapacity or after your death. For example:
- Pet Trusts
- Charitable Trusts legal document
- Special Needs Trusts for a vulnerable family member
What if you want to establish trusts for various family members to preserve large sums of money for their futures? or want to deposit funds into your grandchild’s college fund? What type of trust best suits your particular situation? We can provide the guidance you are looking for. The correct type of trust will depend on your lifestyle. At The Probate House L.C., an attorney will discuss with you what your goals are, what type of assets you own, and provide clear guidance on the best type of trust that will meet your specific goals, tax needs and desires.
Discuss Your Trust Options With One Of Our Attorneys
Our attorneys are familiar with a wide range of trust methods used for wealth preservation and probate avoidance. Schedule a consultation today to discuss the benefits of estate planning and creating the right trust to fulfil your goals. Call us at 424-452-2375 for an appointment in Torrance, California. You may also fill out our online contact form.