If you are a sophisticated California estate planner, your estate plan likely consists of a will and several trusts. Have you ever wondered how many kinds of trusts you can choose from? As FindLaw explains, the answer is “many.” All of them, however, fall into two basic categories: revocable and irrevocable. All of them also have three basic parties: the grantor, the beneficiary or beneficiaries, and the trustee.
At the Law Offices of Alice A. Salvo in California, we help individuals like you devise an estate plan that meets their goals and objectives of providing for themselves and their families. No matter what you seek to accomplish by means of your will and trust(s), we can help you achieve it.
A generation-skipping trust is one methodology by which wealthy Californians can pass their estates down through the family without facing the double estate taxation that other methodologies often entail. As Investor Guide explains, a generation-skipping trust generally names the grantor’s grandchildren as beneficiaries of the trust. By bypassing the grantor’s children, the family saves the estate taxes they would have to pay if the children first inherited, followed later by their own children.
If your loved one wishes to make or change a California will, you need to be aware of the possibility of diminished capacity issues. As explained by the Orange County Bar, legal mental capacity is different than general mental capacity.
If you have never heard of a charitable trust, you may find that establishing one or more of them is the best way you can give back to your church, your alma mater, your favorite California charity, or any number of other organizations to which you regularly donate money. But the bonus, as Fidelity.com explains, is that while you give to these organizations dear to your heart through these trusts, the trusts also give back to you.
Remember how excited you were when you finally got your California estate plan created and established? You likely felt as if a giant burden had fallen off your shoulders. You knew you had perfectly set up your will, trusts, powers of attorney and all your other legal documents so as to ensure protection of yourself and your family, both now and in the future, to the greatest extent possible.
If you and your spouse are like most California parents, you make every effort to raise your children to become responsible adults, financially and otherwise. Unfortunately, these lessons do not always take with some kids, particularly when it comes to handling money responsibly. Today’s “I want it now and I don’t want to wait” culture provides your children with an influence every bit as large as your own more conservative and wise approaches to spending.
As you go about establishing your California estate plan, you likely will come face to face with the issue of trusts sooner rather than later. As reported in U.S. News, all trusts are stand-alone legal entities, meaning that they and the assets you put into them are separate and apart from you personally. Trusts come in two basic types: revocable and irrevocable.
You likely have already made a California will, but do you need to make a new one? You may if you have established a living trust. As FindLaw explains, only a pour-over will can ensure that your living trust works the way you intend it to work.
Before you can set up a special needs trust to benefit your California child, you must determine if (s)he qualifies for such a trust. As you likely already know, “special needs” is an umbrella term that covers a wide variety of illnesses and conditions.