NorCal: 510-901-5375 | SoCal: 818-658-2174
NorCal: 510-901-5375 | SoCal: 818-658-2174
When creating an estate plan, it’s important to examine not only your current financial goals but your future ones as well. Estate planning is a complex process that involves specific tools and processes to preserve your wealth and your assets. One of the most important tools in an estate plan is a trust. Creating a trust can help reduce your tax liability and avoid the probate process, leaving more assets to your family on a faster timeline. If you are interested in creating a trust, the next step is to consult a California trust lawyer for more information.
At The Singh Law Firm, our team of estate planning attorneys would be happy to review your estate plan and your financial goals. We have years of experience providing legal advice to clients and helping them preserve their assets. Our estate planning lawyers understand just how important it is to have a plan in place for when you pass, and we are confident that we can help you create that plan. If you would like to learn more about our services, call our office today at 510-901-5375 for a free consultation.
A trust is a legal arrangement that gives a third party (a trustee) the power to manage assets within a trust. The creator of the trust, or the grantor, names beneficiaries who will receive benefits from the trust, typically in the form of monthly payments. There are many different types of trusts, and in some trust cases, the grantor can assign themselves as trustee to continue managing the assets.
The grantor chooses which assets to move into the trust. The trustee will manage these assets to ensure they remain profitable. Once the grantor passes away, the assets will be distributed to the beneficiaries named within the trust.
There are multiple kinds of trusts to choose from, and some may work better for your financial goals than others. Whether you want to reduce your tax liability, maximize your estate, or preserve your wealth, our team of California trust lawyers can recommend the right trust for your estate plan. Contact our estate planning law firm today to speak with our experienced estate attorneys.
There are many benefits to creating a trust. The main one is that it avoids the probate process after death. The probate process is a legal process that all wills must go through once the creator of the will has passed. The court will examine the will to determine its validity and also hear any disputes from family members. Unfortunately, the probate process can take months or even years to resolve, which means your assets will not be distributed until then. Trusts are not required to go through probate, meaning your family members will likely receive their assets much sooner than if you leave them in a will.
Other benefits of a trust include:
If you create a trust, you will likely be asked to create a revocable or irrevocable trust. These are the two main types of trusts, but they are different in how they operate.
Below are the main differences between revocable and irrevocable trusts:
A revocable trust allows you to manage and control the assets within the trust after it has been created. The grantor can add assets, remove assets, or even revoke the trust altogether at any time if they choose. In most cases, a revocable trust becomes irrevocable after the grantor passes away.
Revocable trusts do not offer the same tax advantages as irrevocable trusts; however, they do offer a sense of ownership and control over the assets within them. If you want to maintain your assets while still creating a trust, a revocable trust may be right for you.
Irrevocable trusts cannot be modified by the grantor after the trust has been established. Once the assets are in the trust, they cannot be modified, added to, or revoked in any way. Because the assets are out of the grantor’s control, they are no longer considered part of the estate and are not subject to estate tax.
If you are looking to lower your tax liability, an irrevocable trust may be right for you. However, an irrevocable trust can be riskier since you are giving up control of those particular assets. If you need assistance deciding which trust is right for you, contact our attorneys today.
The most common types of trusts include the following:
Trusts can be a very valuable estate planning tool when it comes to reducing tax liability and preserving your wealth. If you are concerned about estate taxes or wish to avoid the probate process, a trust may be right for you. Our team at The Singh Law Firm will review your current estate plan and make a recommendation based on your financial goals and your future wishes for your estate. We will also help you create a trust and establish it correctly so it is legally valid and holds up to any potential disputes. For more information about trusts and how they can help you, call our office today at 510-901-5375.
The information contained here has been prepared for informational purpose only and not legal advice. The use of this website and the sending or receipt of information does not create an attorney-client relationship between you and Singh Law Firm.
Advanced Estate Planning
Singh Law Firm, All Rights Reserved ©2023
