Estate planning is important and has many different components involved. One of them is trusts and they are used to protect assets from legal trouble and preserve them for beneficiaries. If you have questions or would like to learn more about the different types of trusts, your options, or how they can affect bankruptcy, contact our experienced California estate planning attorneys to learn more. Our legal team is prepared to help you make decisions that best suit you and your loved ones.
What is a trust in California?
A trust is a contract between a third party and an estate. The person who creates the trust is referred to as the trustor. The individual who receives the assets of the trust is known as the beneficiary. The third-party, known as the trustee, is the manager of the trust on behalf of the beneficiary. The trustee will manage the test until the beneficiary is able to receive the assets.
What is the difference between revocable and irrevocable trusts in California?
There are two different kinds of trusts in California: revocable and irrevocable. Revocable trusts allow an individual to maintain control of their assets until they pass away. Once they pass away, their assets will then directly transfer to their chosen beneficiary. On the other hand, an irrevocable trust transfers possession of an individual’s assets right away. In certain cases, a spendthrift provision can be added to the irrevocable trust to guard it against credit seizure in the event that a beneficiary needs to file for bankruptcy.
If you have questions regarding which trust might be a better fit for you and your family, do not hesitate to reach out to our experienced Pennsylvania estate planning attorneys to learn more about your options and how we can best serve you.
What are the benefits of creating trust?
There are many benefits of creating a revocable trust. The most common in California include the following:
- They allow you to plan for potential mental incapacitation
- They help your family avoid the probate process
- They can help you protect your privacy
Additionally, there are advantages to choosing an irrevocable trust. Some of these benefits include and are not limited to:
- Asset protection
- Charitable estate planning
- Estate tax reduction
If you have questions or concerns about the different kinds of trusts and what options you may have, our firm is here to help. Our California estate planning attorneys have years of experience and are committed to ensuring that you make the best decisions for yourself, your future, and your loved ones.
Contact our Firm
Working with an experienced estate planning attorney, such as Jaci Feldman of the Woodland Hills, California, Law Offices of Yacoba Ann Feldman, will ensure that you are taken care of when you need it most. Do not delay. Estate planning is a more urgent matter than you may think. You never know what the future holds. Contact The Law Offices of Yacoba Ann Feldman to schedule a consultation today.