June 18, 2018

Trusts and Wills

Preparing for the present, the future and the unexpected.Trust-Wills-CA

Why have a Trust?

All of the property that is inside the trust avoids probate. A trust can provide significant estate tax savings and, in some cases, totally eliminate estate taxes. Trusts allow for professional management of your investments during your lifetime. A trust can protect your assets if you are unable to manage them yourself for some reason and can also be used to collect assets for your beneficiaries upon your death. Trusts are established and drafted based on the needs and goals of each client.

What is a Living Trust?

A Living Trust is a binding legal agreement in which a person called a trustee owns, maintains, manages, controls and eventually gives to others (beneficiary) the property of the person who created the trust (i.e., the trustor). The trustor (creator of the trust) is able to act as the trustee as long as they are alive. Since a Living Trust is created while you are still alive, it is called a Living Trust. Trusts are sometimes thought to be only for the wealthy. Not true. A trust is for anyone who would like to avoid the costs associated with probate, avoid paying some death taxes, and provide some limitations on their young children’s ability to access money left to them.