It can be very overwhelming to think about planning for death, but creating an estate plan is a very crucial part of life. Creating an estate plan allows an individual to decide what happens to their personal belongings and assets when their life is over. As part of their estate plan, an individual may wish to set up a trust to manage their estate. It is important to understand the specifics of a trust. A person who creates a trust is a “trustor,” while the person who benefits from it is the “beneficiary.” There is also a third party, known as the “trustee.” A trust is an arrangement that allows the trustee to manage the assets on behalf of the beneficiary. In the state of California, there are many ways a trust can be created.
Benefits of a Trust
Creating a trust has different benefits that are not applicable to other estate options. Because many trusts avoid probate, beneficiaries may gain access to the trustor’s assets faster. Using a trust in your estate planning may also save a beneficiary from certain legal costs. With a trust, an individual can control their property by deciding who their estate is given to. This also allows them to ensure their estate ends up in the right hands after they pass.
Irrevocable vs. Revocable Trusts
There are several ways to create a trust for a beneficiary. Deciding what trust to create depends on what the trustor is looking to leave behind as well as the amount of control they are looking to have over the trust. There here are two main types of trusts:
- Revocable Trust: This type of trust may be updated or terminated at any time without permission from the beneficiary, as long as the trustor is capable of doing so.
- Irrevocable Trust: This type of trust requires the trustor to give up their rights to the trust. This means they no longer own it, taking away their ability to change or terminate the trust at any time.
Other Types of Trusts
There are numerous trust options available to those looking to protect their assets. Every trust exists for different reasons, which is why it is important to seek legal advice to find your best option. The type of trust an individual creates may vary depending on who they are leaving the trust to in addition to what is being left behind. Other common trusts that people choose in California may include:
- Testamentary Trust
- Inter Vivos Trust
- Marital Trusts
- Bypass Trusts
- Irrevocable Life Insurance Trusts
- Charitable Remainder Trusts
- Charitable Leads trusts
- Special Needs Trusts
- Generation-Skipping Trusts
Contact our Firm
If you wish to create an estate plan and are seeking a legal representative to guide you through the process, contact the Law Offices of Yacoba Ann Feldman today.
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.