Helping Californians Prepare for the Future
Estate planning is an essential process that helps you prepare for life’s inevitable events, such as aging, death, chronic illness, or incapacitation. Even if you are young or own few tangible assets, creating an estate plan offers numerous benefits. It ensures your wishes are honored and provides clarity during challenging times.
A thoughtfully designed estate plan is a heartfelt and enduring gift to your loved ones, offering them peace of mind and guidance during the difficult period following your illness or passing.
At The Singh Law Firm, our team cares about your future and the future of your loved ones; we are passionate about helping you preserve your estate and assets for those you leave behind. We have the experience and compassion to handle each situation like our own. Call 510-901-5375 today to schedule your consultation.
How Can Trusts Benefit My Family?
Of the many tools available to you in estate planning, one of the most versatile is the ability to set up trusts for your loved ones. A trust is a legal contract that gives a third party (typically known as a trustee) the power to manage the assets within the trust. The assets can be fiduciary or material, such as a piece of property. The trust’s creator names the trust’s beneficiaries and determines how they will benefit from the trust. The trustee then oversees the trust’s management and ensures it is administered to your wishes. There are many different types of trusts available. Your estate planning team can help determine if a trust is right for your family and your estate.
What is a Revocable Trust?
A Revocable Trust is also known as a living trust. It is one of the more common forms a trust can take. Revocable Trusts have a multitude of benefits. Primarily, it is the versatility of these trusts that makes them attractive to people. The ease with which they can be set up is also a positive feature.
A revocable trust is a versatile legal tool that allows you to own, buy, sell, hold, and manage assets according to specific instructions. The grantor establishes the trust and can modify or revoke it at any time.
The primary parties involved in a revocable trust are the trustee, responsible for managing the trust’s assets, and the beneficiary or beneficiaries, for whom the assets are intended. Upon the grantor’s passing, the trust’s assets bypass probate, ensuring a private distribution process. However, these assets remain subject to both federal and state estate taxes.
Different types of revocable trusts are designed to address specific needs. For instance, a qualified terminable interest property trust provides financial security for a surviving spouse. In contrast, an incentive trust encourages beneficiaries to meet particular goals or maintain specific standards of behavior.
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What Is An Irrevocable Trust?
An irrevocable trust transfers assets from the grantor’s control and name into the beneficiary’s hands. This arrangement helps safeguard the assets from creditors and reduces the overall value of the grantor’s estate, thereby lowering estate taxes.
Unlike revocable trusts, irrevocable trusts cannot be altered, amended, or terminated unless the grantor’s beneficiaries consent or a court issues an order. The specific rules governing these trusts can differ. Your team at The Singh Law firm is happy to discuss with you and answer any questions you have regarding the setup or administration of these or other trust options available to you.
Are there Legal Implications if I fail to Properly Fund a Trust I’ve Set Up?
The proper set-up and administration of a trust for your family is critical. For this reason, you should always consult a qualified and skilled legal team before setting up a trust. Many people believe it can be done without guidance and don’t realize there are long-term legal consequences for your family if done improperly.
Suppose you set up a trust that is not adequately funded or fail to transfer your ownership of the included assets properly. In that case, many legal consequences may impact your loved one’s ability to benefit from the trust.
Consequences of primary concern are:
- Your estate may face probate, a lengthy legal procedure that can restrict your loved ones’ access to assets. This process often requires legal counsel, causes emotional strain, and prolongs the grieving period for your family.
- Failing to fund a Trust adequately can increase the costs your family must absorb. These costs can take the form of estate taxes or other unforeseen expenses that will ultimately reduce the value of your estate.
- Perhaps most distressingly, these can result in acrimonious disputes between family members. During grief, emotions and stress are heightened, and relationships may be damaged beyond repair.
When Should I Call an Estate Planning Attorney in California?
Few gifts provide our loved ones with true peace of mind after we are gone. Preparing for such an event is never easy—it’s a complex and emotional topic. No one likes to think about their passing or imagine the sadness their loved ones may experience. However, we can offer support during this challenging process.
The most compassionate step we can take is to have open and honest conversations about these matters ahead of time, both with our families and a qualified estate planning attorney. At Singh Law Firm, our knowledgeable legal team is primed to guide you with care and deftness. Call 510-901-5375 to schedule your free consultation.
