It might be easier to start with the basic concept of trust law, and then move to the types and their specific benefits. Knowing how it works will be helpful when it comes to finding a professional living trust Fairfield CA attorney who can create rock-solid structures for trusts. This process safeguards a family's wealth and facilitates its transfer to the next generation while reducing the tax burden and other costs in many ways.
A property owner, known in this reference as the settlor, may establish a trust and transfer some or all assets owned into the custody of the trustee. It is a better and more powerful option as compared to wills, but the intention of distributing wealth to inheritors in a specified manner remains the same. In this case, a beneficiary or multiple named beneficiaries will be able to receive the benefits generated without having ownership or control over the property.
Trusts come in many different forms, but the classification that matters most in this case is whether it becomes active upon the death of the settlor or before. If it kicks in after death, then it's just a testamentary trust for executing the last will and testament. In this case, it will be the entity controlling a part or all of the deceased's estate.
If it is created to become active while the property owner is still alive, that's called a living or inter-vivos trust. This type can be revocable or irrevocable. As the name suggests, the structure and beneficiaries of the revocable type may be modified after it has been created.
Trusts that are created to be irrevocable don't allow the owner to retain this kind of control. The main reason inter-vivos trusts are so popular is because they help families avoid probate. While the rest of the estate faces the delays and costs associated with the probate process, the property held in the trust skates free because it does not fulfill the definition of being under the deceased's ownership.
It must be obvious by now that these trusts are highly efficient when it comes to handing over an inheritance to beneficiaries without having to pay a large part of the estate in taxes and costs. It's also an excellent way for controlling how property is used without the headache of managing and growing it. The trustees will take care of it all, including investments, tax strategies, benefit distributions, etc.
The original owner of the property does not have to be involved in all this. However, the structure of these trusts ensures that the actions taken are exactly as intended by the settlor. If it is revocable, the owner may also step in to remove or add beneficiaries and further modify the structure.
It's understandable that many people think only high-wealth individuals need a living trust. But a free consultation with a Fairfield CA attorney will prove that it's actually very useful and beneficial for any family where the home, retirement accounts, life insurance benefits and other such assets are being handed over to the next generation. It's also a good idea because trusts are air-tight and cannot be overturned, while wills are easily challenged in court.
A property owner, known in this reference as the settlor, may establish a trust and transfer some or all assets owned into the custody of the trustee. It is a better and more powerful option as compared to wills, but the intention of distributing wealth to inheritors in a specified manner remains the same. In this case, a beneficiary or multiple named beneficiaries will be able to receive the benefits generated without having ownership or control over the property.
Trusts come in many different forms, but the classification that matters most in this case is whether it becomes active upon the death of the settlor or before. If it kicks in after death, then it's just a testamentary trust for executing the last will and testament. In this case, it will be the entity controlling a part or all of the deceased's estate.
If it is created to become active while the property owner is still alive, that's called a living or inter-vivos trust. This type can be revocable or irrevocable. As the name suggests, the structure and beneficiaries of the revocable type may be modified after it has been created.
Trusts that are created to be irrevocable don't allow the owner to retain this kind of control. The main reason inter-vivos trusts are so popular is because they help families avoid probate. While the rest of the estate faces the delays and costs associated with the probate process, the property held in the trust skates free because it does not fulfill the definition of being under the deceased's ownership.
It must be obvious by now that these trusts are highly efficient when it comes to handing over an inheritance to beneficiaries without having to pay a large part of the estate in taxes and costs. It's also an excellent way for controlling how property is used without the headache of managing and growing it. The trustees will take care of it all, including investments, tax strategies, benefit distributions, etc.
The original owner of the property does not have to be involved in all this. However, the structure of these trusts ensures that the actions taken are exactly as intended by the settlor. If it is revocable, the owner may also step in to remove or add beneficiaries and further modify the structure.
It's understandable that many people think only high-wealth individuals need a living trust. But a free consultation with a Fairfield CA attorney will prove that it's actually very useful and beneficial for any family where the home, retirement accounts, life insurance benefits and other such assets are being handed over to the next generation. It's also a good idea because trusts are air-tight and cannot be overturned, while wills are easily challenged in court.
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