BENEFITS OF A LIVING TRUST
One of the most popular tools within estate planning
Living Trusts in Southern California
What Is a Living Trust?
In basic terms, trusts are legal arrangements in which a person’s assets (“the trustor”) are assigned to a custodian (“the trustee”), who manages the assets for the benefit of a third party (“the beneficiary”). Living trusts are unique in that living trusts allows estate owners to name themselves as the trustee of the estate.
Here’s why that matters:
Revocable living trusts allow far more flexibility for estate owners. The power to revoke allows trustors to make changes as they see fit, or to terminate the trust outright and place the assets under their name. Living trusts also benefit from highly reduced estate taxes, as a trustor’s property “belongs” to the trust.
While the living trust does make sense for some, it is not necessarily right for everyone. If you are planning your estate, it is important to consult with an experienced estate planning attorney about your specific goals prior to selecting the estate planning tools for you.
Benefits of Living Trusts
Often, a simple will is the best solution for estate planning purposes; however, there are situations where a living trust is a powerful tool. A living trust can be used to manage your property before and after your death, as well as clarify your wishes for how these assets should be distributed after your death. If you become unable to handle your own affairs, the trust is in place to manage your financial affairs, usually by a trustee that you name.
Due to their usefulness and tax benefits, revocable living trusts have become one of the most popular tools for estate planning.
How can a living trust help your estate?
- A living trust will avoid the costly and time-consuming process of probate for all assets that have been transferred to the trust.
- A living trust can avoid a conservatorship, which is a court proceeding that is expensive, time-consuming and restrictive. These are established when an individual can no longer manage his or her financial affairs.
- If you are married and your estate is subject to the federal estate tax, a living trust can reduce or eliminate federal estate taxes.
Assets held by the trust are exempt from probate. As a result, trusts are far more cost-effective in the long run. Legal fees for probating an estate are usually much higher than the fees for administering the trust. Probate can take a year or longer to complete, while a trust administration can be completed in a much shorter time.
Trusts are also easier to manage for families and better for the longevity of an estate’s assets—trustees can name successor trustees, ensuring that the estate passes largely intact from administrator to administrator.
Start With a Free Initial Phone Consultation
Please note that preparation of a living trust does cost more than preparation of a simple will. A living trust can be the correct choice for many when considering options for estate planning. If you have questions regarding your estate planning, contact our experienced and highly-qualified estate planning lawyers.
Contact the offices of Holstrom, Block & Parke, APLC. We will help you decide what is best for you and your family. Visit us at one of our offices located throughout Southern California.
Get Professional Legal Help
Experience the HBP Difference
We pledge to serve & protect your interests
We will work tirelessly to achieve your goals
We promise to make you important
We have over 200 years' experience combined
We have 6 Family Law Specialists as certified by the California Board of Legal Specialization
We offer FREE phone consultations to best serve you
Our attorneys are waiting to help you
Professional Legal Help
Free Phone Consultation
Orange County Office
4940 Campus Dr., Suite A, Newport Beach, CA 92660
1897 California Ave., Suite 102, Corona, CA 92881
Temecula Valley Office
38975 Sky Canyon Dr., Suite 101, Murrieta, CA 92563
3780 12th Street, Riverside, CA 92501
San Diego Office
3111 Camino Del Rio, N., Suite 445, San Diego, CA 92108
380 S. Melrose Dr., Suite 347, Vista, CA 92083