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Trusts Attorney in Downey Helping Clients Allocate Their Assets
If you are starting your estate plan, you may be considering setting up a trust. A trust is an excellent option for distributing benefits to family members and loved ones in a timely manner. With a trust attorney on your side, you can rest assured that your trust is protected and your tax liability is minimized.
Establishing a trust can be a complex process with a lot of legal jargon and decision-making. Consulting with an experienced trust lawyer is the best way to choose the right trust for your unique circumstances and protect your assets in the future. If you’re considering setting up a trust, please don’t hesitate to reach out. Contact Resolve Law Firm, APC today at 213-583-5547 for a free consultation.
What is a Trust?
A trust is a legal entity with distinct rights from the trustor. When setting up a trust, the “trustor” gives another party, the “trustee,” the right to hold title and manage property or assets. Any property or assets in the trust will benefit a third party, the beneficiary.
A trust is a popular estate planning tool. For one, a trust allows you to schedule the distribution of inheritance to your heirs, which a will does not. Trusts are also advantageous because they can potentially lower the taxes that your estate has to pay before distribution. Because properties held in a trust are technically not part of your estate anymore, they are often no longer subject to estate taxes.
A trust also allows your family members to avoid the probate process after your death. Probate is the legal process of executing a will and estate plan, and it often takes up to four months or longer. With a trust, beneficiaries can immediately start inheriting their benefits without a lengthy probate process.
What Does a Trust Lawyer Do?
A trust lawyer is an attorney who creates the trust on behalf of someone else. As your lawyer, a trust attorney will help you set up the trust and complete all necessary paperwork, ensuring accuracy. After the trust is in place, your attorney can advise the trustee on managing the trust, ensuring they remain an impartial third party. If your estate is large or exceptionally complex, you could name a trusts lawyer as your trustee to manage and protect your assets.
A trust attorney will also draft a plan to distribute the properties within the trust after the trustor’s death. An attorney can help you by maximizing the benefits that beneficiaries receive, as well as drafting documents to protect against lawsuits. Your lawyer will make a plan for your trust based on your financial needs, the number of beneficiaries you have, and the size of your estate.
What’s the Difference Between Revocable and Irrevocable Trusts?
Because your financial situation is unique, your trust can be, too. When setting up a trust, there are two main types you can choose from.
Types of trusts include:
Revocable Trust
In a revocable trust, you can change it at any time. For instance, you might switch the beneficiary or even revoke the entire trust itself. Under a revocable trust, you can also name a successor to handle the assets in the trust in case you become mentally incapacitated in the future.
Although revocable trusts come with benefits, there are some drawbacks. Revocable trusts are vulnerable to creditors and taxes because their assets are still considered personal property. A revocable trust does not protect you from a lawsuit, and the assets in these trusts are considered for Medicaid planning.
Irrevocable Trust
As its name suggests, an irrevocable trust is a trust you cannot change once established. You cannot manage the assets in the trust or remove assets or property from the trust. Once the agreement is formed and signed, it cannot be changed.
Irrevocable trusts offer more protection from taxes. Because the assets are permanently in the trust and are owned by the trustee, the trustor no longer owns those assets. Therefore, the assets do not contribute to the value of the estate and are not subject to estate tax.
When setting up a trust, there are multiple financial and economic factors to consider. A trust lawyer is here to help guide you through the decision-making process to do what’s best for your estate and beneficiaries. Reach out today for experienced legal assistance when setting up a trust.
When is a Living Trust Beneficial?
A testamentary trust is a trust established as a last will and testament. A living trust is a trust established during a person’s lifetime. These lifetime trusts, also called living trusts, are beneficial when you have many conditions within your trust or wish to make changes to the trust while you are still alive.
Living trusts are revocable, meaning they can be changed at any time. If you are unsure what you’d like to put in a trust and what you’d like to put in a will, a living trust gives you the time to figure that out. Similarly, if a beneficiary of yours has special needs, a lawyer can help you establish a special needs trust for them.
Do I Need a Trust Attorney?
Choosing the right trust is an essential part of estate planning. Allocating assets, assigning a trustee, and choosing beneficiaries can all change how your trust is established and its tax implications. To receive the most benefits and allocate the most assets to your family, consulting with a trust lawyer is an absolute must.
If you have questions about a trust or would like help choosing the right one for your financial needs, contact Resolve Law Firm, APC today by calling 213-583-5547.