When you consider your estate plan, you may wonder which legal pathways to choose to protect and manage your assets, both during your lifetime and after your passing. Should you set up a revocable trust, an irrevocable trust, both, or neither? Here is an overview of trust options in California and consult a living trust attorney to help prepare for the future.
A trust is a legal entity that can hold any type of asset, including money, stocks, real estate, valuables, and more. A trust includes three parties:
Depending on the structure, trusts can serve many purposes, like avoiding probate, shielding assets from debtors, or providing for a loved one with special needs.
If you already created a legally valid, up-to-date will, do you also need a trust? Not necessarily. If you have comparatively few assets and a small estate below the probate threshold, you may not need to bother setting up a trust. An experienced estate planning and living trust attorney can let you know what the current probate threshold is in California.
Revocable living trusts are generally easy to set up, manage, and modify. You can act as an all-in-one grantor, trustee, and beneficiary during your lifetime and appoint a successor trustee to manage and distribute trust assets after your death.
Revocable trusts can:
The chief limitation of revocable trusts is their inability to protect assets. Since you retain full control of trust property, these assets still count as part of your estate for taxes and claims.
Irrevocable trusts are just as the term implies: unamendable except for highly specific circumstances. This type of trust requires an independent trustee, and when you place assets in it, you relinquish direct control over these assets (although you may still benefit from trust proceeds).
Irrevocable trusts can:
The main drawback of irrevocable trusts is the difficulty of making any changes to the trust document after its creation. It’s crucial to work with a skilled living trust attorney to help make sure that your trust is in line with your estate planning goals and existing documents, like your will.
So what type of trust would benefit you most? An estate planning consultation will help you set up the right type of trust based on your chief considerations, for instance:
Not sure which trust will answer your asset protection and estate goals? Contact the Law Offices of Alice A. Salvo and start working on a reliable, end-to-end estate plan that can help shield your property, protect your family, and gain peace of mind.
Call 818-582-8624 or contact us online today to schedule a consultation with a living trust attorney in California.