Trust Attorneys in Auburn, California
One of the biggest proactive moves but also has the most amount of hurdles in estate planning is the use of a trust. If used correctly, a trust is a very flexible and potent tool for estate planning, but it is underutilized by many interested citizens. By recruiting the help of a trust attorney in Auburn, California, you are able to create a separate artificial entity similar to a corporation that could help with easier management of your estate, especially if unfortunate circumstances occur.
For a trust to be legally complete, it must have four basic requirements: a trustee, a trust property, a trust document, and knowable beneficiaries. Within the trust document, the following points are understated:
- the underlying rules that operate the trust;
- the vested powers of the trustee;
- the property distribution plan;
- the beneficiaries receiving the principal and income from the trust
Applying for a trust is a surefire way of making sure that your estate planning will be handled properly even after unfortunate circumstances, but there are a lot of factors that you need to consider. If you are interested in knowing how to proceed with this application, our experienced estate planning team in our Auburn CA Law office will be able to guide you towards the process and give you more options. Don’t hesitate to contact our team to help guide you with a consultation. Take charge of your financial future!
What is a Trust?
A trust is a legal method in which a third party, or trustee, inventories, liquidates and distributes assets of the deceased for an inheritor or beneficiary. This process is done through a legal document called a trust agreement. The trust creator, also called a grantor, settlor, or trustor, files the document containing specific info regarding their real estate. This includes the following:
- Instructions regarding the management of the trust assets.
- Distribution of assets from the trust fund.
- Instructions for unfortunate circumstances like incompetency or death.
Funding the Trust
Given its legal nature, it’s important that all assets are covered in a trust, but different circumstances can lead to issues with proper trust funding. The trustor should have the initiative to change the ownership title of their different assets from their name to the name of the trust. It is also encouraged to have a separate wills document to act as another form of back-up.
A lot of clients are able to go through with the paperwork needed to create a trust fund, but fall short in the maintenance department. Given the amount of assets involved, it is important that the types of estate planning being considered are owned individually. Joint assets are not allowed under a trust fund application unless ownership is divided between the different parties. Aside from that, other property types like personal property, real estate, or cash, are easily included in a trust. Our trust attorney team has helped a variety of clients in different parts of the process, from the planning phase, to even litigation in some corner cases.
What are the steps in creating a Trust?
Given their versatility, trusts are considered by a lot of interested estate planning attorneys and citizens alike. But unlike other options, trusts may or may not fit your needs. To know if this process is for you, follow the short guide below:
- Identify your current real estate and assets and assign value to them.
- Check if there is a need for asset transfer and determine when this transfer should take place (during lifetime, after death, another target date)
- Determine how you want to transfer the fund, and if you want to still earn income while keeping it.
The larger an estate planning procedure is, the more complicated the beneficiaries considered, and the number of asset transfers needed, a trust becomes more and more potent. Situations that include the protection of assets from different family members, or concerns regarding second marriages and having an heir from different parents, a trust is capable of carving out special needs and concerns in these niche cases. A trust also provides smoother management transfer in cases where the clients become debilitated or ceases to handle the trust. Lastly, a trust allows different cases to proceed faster if the police or a judge litigation ever occurs due to the situation.
As noted here, the planning and research process is an integral aspect of a proper trust creation. By enlisting the help of our experienced San Francisco Trust Attorneys, we can help you answer these questions and comb through the legal matter to provide the best options for your needs.
What are the different Types of Trust?
The two major types of trusts are Living Trusts and Testamentary Trusts. As the name suggests, a living trust is created while the person is still living. A testamentary trust on the other hand is generated after the death of the person. This is also established through the wills of the deceased individuals.
After the death of an individual, a testamentary trust is generally established. A common example of this type of trust is the one generated upon the death of both parents of minor children. In this specific scenario, the goal is to create a fund catering to the health and welfare as well as the education of the orphaned children. In these cases, the trust is dissolved until the purpose of the trust is achieved.
There are two main types of living trusts: revocable and irrevocable.
A revocable trust, as the name suggests, is an alterable form of a living trust. It still has the general aspects of a trust, such as transferring ownership, but the trustor is given the capacity to amend or end the trust. Trust administration also becomes important in a revocable trust application, as it allows your attorney and your beneficiaries to handle the trust after your death.
An irrevocable trust, on the other hand, is unalterable and interminable. Once the assets are transferred, the authority over the trust is not retained. In this set-up, the value of the estate is not considered in federal estate tax, attorney’s fees or executor fees.A trusted family law attorney in our Northern California law firm may be able to give you and your loved ones proper legal advice as to which of these options would be best for your situation.
Consult with us with your Trust Concerns
Deciding how you’d like your estate plan managed after you pass away may feel confronting, and it’s an easy task to set aside. But formalizing those important estate planning decisions now can save your loved ones much confusion, conflict, and financial hardship later on. With the versatility of trusts, a proper estate planning attorney will be able to help you plan ahead, even during times where you will not be with your family.
Our experienced estate planning lawyer in our law office will sit down and listen to your concerns, review your assets, and come up with a plan together with you to ensure your assets are all accounted for and that your wishes are honored. If you are in the following counties, our team will be open to accepting your inquiries and offer you our legal services:
- Alameda County
- Nevada County
- Santa Clara County
- Contra Costa County
- San Francisco County
- Solano County
- Marin County
- San Mateo County
- Sonoma County
- Santa Cruz County
- Stanislaus County
- Orange County
- Sacramento County
There’s never a wrong time to begin thinking about your trust. If you also have concerns regarding related inquiries like probate law and wills management, then don’t hesitate now! Act today and rely on Bottomline Lawyers to help you through our legal services and make it seamless and hassle-free. Schedule a FREE consultation with us to learn how we can help your estate planning process!