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Trusts are incredibly versatile legal tools that can be used for a variety of purposes. But what are they, exactly? A trust is a legal arrangement between a trustee, who takes possession of property and holds it in the trust to benefit the beneficiary or beneficiaries.
There are different types of trusts and you need to know what each one can do for you. It is also important to know the benefits of setting up a trust and how to go about creating one.
There are a few things you need to know about trusts:
You might be wondering: what exactly do trust lawyers do? Primarily, trust lawyers help individuals and families set up trusts to protect their assets from estate taxes and probate. They can also help you create a plan to distribute your assets to your loved ones in the most efficient way possible with the least amount of estate taxes and legal fees. Additionally, trusts can be used to protect your children’s inheritance from creditors, lawsuits, and divorces. In short, they offer a wide range of benefits and can be a crucial part of asset protection planning strategy.
When it comes to estate tax planning, it’s important to have a trust lawyer who can help you create a trust that will minimize the amount of taxes your heirs will pay when you pass away. What do trust lawyers do? They help you set up a trust that will give you peace of mind and protect your assets. They also help you choose the right trustees and beneficiaries and can guide you on how to best structure your trust to meet your specific needs.
An irrevocable trust is a trust that cannot be changed or canceled after it has been created. This type of trust is useful for estate tax planning, as it allows you to put assets such as property, stocks, and investments into the trust during your lifetime which removes those assest from your taxable estate when you pass away.
The great thing about an irrevocable trust is that it can help you take care of your loved ones before and after you are gone. There are other techniques that can be used in conjunction with irrevocable trusts to further your estate tax savings.
A revocable living trust is a type of trust that can be amended or canceled at any time by the person or people who created it, which is why it is also sometimes called a “living trust.” This type of trust is popular for estate planning because it allows the person who created it to retain complete control over the trust assets while they are alive. This includes the ability to buy, sell, swap, add and remove assets from the trust. When the creator of the trust dies, the assets in the trust go to the beneficiaries they have named. The assets your leave a beneficiary can be distributed outright or held in trust for the beneficiary’s benefit. Further, holding your assets in a revocable living trust will allow your estate to avoid going through probate when you pass away. Probate is an incredibly expensive, public and time consuming process that causes unnecessary hardship on your loved ones.
One of the more specialized types of trust is the special needs trust. This trust is designed to provide for a loved one who has a disability and is unable to care for themselves. The trust allows you to leave assets for a loved one who is currently receiving public benefits without the risk of the inheritance causing them to lose eligibility for the public benefits.
If you’re considering setting up a special needs trust, it’s important to work with an experienced estate planning attorney who can help you design a plan that meets the unique needs of your family.
As the name suggests, this type of trust is set up to benefit a charity or cause, rather than an individual. The trustees of the trust will usually donate money or property to the charity, and in return, they receive a tax deduction.
One of the advantages of a charitable trust is that it allows you to donate money or property while still retaining control over how it is used. You can also set up specific parameters for how long the trust will operate including how the money will be distributed.
If you’re thinking of setting up a charitable trust, it’s important to consult with an attorney to make sure everything is done properly.
Now that you know a bit more about trusts, you’re probably wondering how much they cost. The truth is there’s no one-size-fits-all answer to this question. The price of setting up a trust will vary depending on the lawyer you work with and the size and complexity of your estate.
You can expect to pay anywhere from a several hundred dollars to a few thousand dollars for estate planning services. However, this is a small price to pay compared to the cost of probate, which costs a non-negotiable amount set by the State of California and is based on the value of your estate.
Now that you know about the different types of trusts, you may be wondering which one is right for you. The best way to decide is to speak to an estate planning attorney. They will be able to help you figure out which trust is the best fit for your needs and your estate. Trusts can be a great way to protect your assets and ensure that your loved ones are taken care of after you are gone. If you’re thinking about setting up a trust, speak to an estate planning attorney today.
it’s important to contact an experienced law firm like Law Offices of Michael K. Lanning, APLC. We can help you to set up a trust that will allow you to pass on your assets to your loved ones without having to pay unnecessary estate taxes or have your estate go through probate. We serve the West Los Angeles, Pacific Palisades, South Bay and Beverly Hills areas. Contact us at 310-820-1600 or send a message to [email protected] to book an appointment.
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