Are You Trying to Protect Your Family's Future? We Can Help.
As a hardworking American citizen, you know the feeling of a job well done. Over the years, you are likely to have accumulated some wealth and assets for all your labor. Unfortunately, you cannot assume that once you have earned them, it will be easy to retain them, especially in the case of any tragic, unexpected event of incapacitation, illness, or even death.
Here at Giammichele Law, APC we are keenly aware of how tirelessly you have worked to provide for your family, so we are committed to working tirelessly to protect your assets. We can devote extensive time in making sure all of your income and property are safeguarded through the protection of a powerful trust.
We can assist you with any of the following trust matters:
- Trust disputes & litigation
- Estate litigation
- Will disputes & contests
- Probate & trust administration
With help from our experienced attorney, you can gain the support and insight you need to address the most important concerns you have about protecting your assets. By investing time in creating a trust now, you can help your estate avoid probate and unnecessary taxation when you pass away. This means leaving more behind to help your loved ones build successful lives of their own.
How Does a Trust Work?
Trusts are important estate planning tools people use to avoid probate, minimize their estate's exposure to taxes, and protect their assets, among other benefits.
Any trust is essentially a legal entity you create to transfer your assets into. In doing so, these assets – which can include cash, real estate, and other property – are removed from your personal estate. When properly executed, this leaves nothing in your personal estate, so probate is unnecessary when you pass away.
At that time, the trust document you created guides how the property in your trust should be dispersed among your named beneficiaries. During your life and after your passing, the management and administration of your trust are handled by a trustee. This is a third-party individual with a fiduciary duty to the beneficiaries of the trust.
Are There Different Kinds of Trusts?
There are many different trusts that serve a variety of broad and niche purposes. For example, a living trust is an arrangement where the settlor (trust creator) puts their property in the care of a trustee for the benefit of their beneficiary, who can actually be the settlor.
There are also trusts established to ensure that a loved one with special needs has the financial resources they need to afford medical care and living expenses. There are even pet trusts that allocate funds for the care of a beloved pet after its owner passes away.
If you're thinking establishing a trust for a specific reason, sharing that information with our trust attorney in Laguna Woods can help point you in the right direction. With our guidance, you'll be surprised at how much more clear the trust creation process can really be!
Revocable vs. Irrevocable Trusts
For all of the variety trusts can have, though, there are still two basic kinds of trusts: revocable and irrevocable.
A revocable trust is one in which the settlor can change the terms of the trust at any time after its creation. This is important because all trusts go into effect as soon as they're created, so a revocable trust provides a more flexible option to alter provisions or move property around.
Importantly, though, revocable living trusts are generally less secure than their irrevocable counterparts. They can still be attacked by creditors and their assets can be subject to both state and federal estate taxation.
An irrevocable trust offers greater security for the assets it holds, but often at the cost of the settlor's access to them in the future. In most cases, irrevocable trusts can't be changed once created – if adjustments are possible, usually every beneficiary has to agree to them.
Irrevocable trusts can be important tools, however, because they remove assets from the settlor's taxable estate. This removes their estate tax liability upon the settlor's death – and not just for the principal assets, but any income or interest they generated as well.
Benefits of Using a Living Will
There are several benefits of having a living trust in the state of California. One of the most important features is that you will not need to have your estate go through the probate process. This results in having a much more rapid distribution of all your assets to your beneficiaries.
Whereas a valid will that requires probate can sometimes take more than two years to process, the distribution of assets from a living trust could take only a few weeks before your loved ones are able to receive your property.
Another benefit is that neither the state or federal government can make as many choices on your account which would not be in the interest of you or your family.
Get Qualified Legal Assistance
Forming any kind of trust can be a complicated and risky process. By no means should you attempt to handle this process all on your own or with the help of someone who doesn't have your best interests in mind.
At Giammichele Law, APC , our trust attorney in Laguna Woods wants to help his clients achieve the best possible outcomes. By applying our personalized approach to legal service, we can help you establish the trust you need to accomplish the goals you have for your estate.
Learn more during a consultation. Contact us online to schedule yours!