Living Trust Lawyer Carlsbad, CA
As a living trust lawyer Carlsbad, CA recommends will point out, developing an estate plan is critical at any point in a person’s life. Estate plans aren’t just for the aging population. Anyone who would like to outline their wishes should have an estate plan in place. The estate plan comprises vital estate planning documents outlining how you would like assets distributed, identifying guardianship over children, and providing direction over what should happen should you become incapacitated. As Kamper & Estrada, PLLC will share, a living trust is one component of the estate plan that provides many advantages. When determining the best approach to take, it will be in your best interest to speak with an experienced lawyer before moving forward.
What is a Living Trust?
A living trust is created during a person’s lifetime. The trustor, also known as a grantor, moves assets into a trust. This allows a third party to hold assets for the beneficiary. While many trusts a person can choose from, the type will depend on your specific situation. Living trusts are among the most popular and come in two forms:
Revocable Living Trust: A revocable living trust places all of your assets, investments, real estate, and more into a trust during your lifetime. As the grantor, you can also name yourself as the trustee. As a living trust lawyer in Carlsbad, CA, will tell you, this gives you the ability to make changes to this trust at any point in your lifetime. The grantor will be responsible for naming a successor trustee to take over should you become incapacitated or pass away. Your successor trustee can then distribute assets to your beneficiaries according to your wishes. While there are many advantages, it’s important to be aware that you will still be taxed on your income because the trust was created and managed during your lifetime. Here are some advantages to a revocable living trust:
- To avoid the probate process
- To keep the contents of your estate private
- The ability to make changes to the trust
- Minimize the risk of family conflict
- Preserve assets for generations
- Can help reduce estate taxes
Irrevocable Living Trust: An irrevocable living trust cannot be modified or terminated once it has been created unless the beneficiaries give their permission. Once all assets are transferred into an irrevocable living trust, the grantor no longer has rights to these assets. These trusts are also beneficial because they are protected should the grantor be facing a lawsuit, as the assets within the trust are protected from any legal judgments. The following are the advantages of an irrevocable living trust:
- Protects assets from creditors and legal action
- Larger estates benefit the most from irrevocable living trusts as there are a variety of tax benefits. Gifting your estate in an irrevocable living trust makes it exempt from estate taxes, even if the tax-free gift limit is exceeded.
Kamper & Estrada, PLLC can assist those planning for the future. The estate planning process doesn’t have to be overly complicated. With our help, we can further simplify the process to have a plan that you and your family can rely on. Living trusts offer many benefits and are no longer an estate planning tool reserved for the wealthy. To get started, schedule an appointment with our living trust lawyer serving Carlsbad, California.