After years of hard work and accumulating any amount of wealth or assets for your labors, it is important to make sure you retain them. Life can happen fast, unexpected incapacitation, illness, or even death can put your hard-earned property at risk of excessive taxation or mismanagement. Below our Laguna Woods estate planning team offers insight into the importance of planning ahead with living trusts.
Why Trusts Are So Useful
Trusts are an important part of any estate plan, and hold several key advantages over traditional wills.
One of the most notable benefits of a trust is the ability to avoid the probate process for the trust's assets. Not only does make the distribution of assets upon your passing far easier, it also prevents your loved ones from entering any lengthy litigious disputes over the contents of your trust.
A valid will subject to probate has the potential to take over two years to fully process. Meanwhile, a living trust may only take a few weeks before your property is distributed to the proper beneficiaries.
Additionally, neither the state or federal government is able to make any choices on your behalf that are not in the best interest of yourself or your loved ones.
Types of Trusts
There are a number of different types of trusts that allow you to accomplish separate goals. One factor to consider is whether you would like your trusts to focus on either permanence or changeability. The two categories of these trusts are revocable and irrevocable trusts.
- Revocable trusts allow you the right to amend certain aspects of the trust at any point in your lifetime.
- The biggest benefit of these trusts is that they remain part of your estate after you pass away, and remain immune to probate.
- Irrevocable trusts are not able to be changed once they are established.
- While they remain part of your estate, they are also untaxed upon your passing.
Contact the Law Offices of Steven Giammichele Today
We understand that planning for the future can be a daunting and stressful task. At Law Offices of Steven Giammichele, we are dedicated to exploring your options and making sure the best interests of both you and your loved ones are upheld.
If you are looking for experienced and compassionate legal representation, contact us today through our website or give us a call at (949) 303-7811 to schedule your consultation today!