Can a Trust Strengthen my California Estate Plan?

There are many different parts to creating an estate plan. It is because of this that the idea can often become overwhelming. However, having a comprehensive estate plan is one of the most important things a person can have for themselves and their loved ones. Doing so allows you to be prepared for the future of your assets in a world that is unpredictable. When creating an estate plan, it is important to have a basic understanding of each tool and how it can benefit your estate. A popular tool that is used to prepare assets for the future is a trust. Continue reading below to learn more and contact an experienced California estate planning attorney for assistance.

What is a Trust?

When people create an estate plan, they may consider the creation of a trust to manage their assets. Simply put, this is a contract between the estate and a trustee. A trustee is an individual who manages a trust for a person who benefits from it, known as a beneficiary. This arrangement allows a trustee to hold and take care of these assets on behalf of the beneficiary until they are able to do so themselves. There are many different types of trusts that can be created in California, including:

  • Revocable Trust
  • Irrevocable Trust
  • Testamentary Trust
  • Inter Vivos Trust
  • Life Insurance Trusts
  • Special Needs Trusts
  • Generation-Skipping Trust
  • Charitable Remainder and Charitable Leads Trusts

What are the Benefits of a Trust?

A trust is very different from other tools that are used in an estate plan. It is because of this that it has its own benefits. This can include the following:

  • Probate avoidance: During estate administration, probate may take place. This is a lengthy and costly court proceeding. However, it can be avoided through the use of one or more trusts in your estate plan.
  • Tax reduction: Trusts can help you reduce estate and gift taxes on your estate.
  • Control over disbursement: With a trust, you have more control over asset disbursement than a will would provide. A trust can reduce the chances of a beneficiary engaging in poor financial decisions and harming their inheritance. 

Contact our Firm

Working with an experienced estate planning attorney, such as Jaci Feldman of the Woodland Hills, California, Law Office of Yacoba Ann Feldman, will ensure that you are taken care of when you need it most.Contact The Law Offices of Yacoba Ann Feldman to schedule a consultation today.