There are many steps involved in an estate plan, however, one of the most important is creating a trust. Trusts are used to ensure that assets are taken care of before they are in the possession of beneficiaries. Reach out to our law firm today to speak with one of our skilled California estate planning attorneys about which type of trust is best for you and your family.
What is a trust?
A trust is an agreement between a third party and an estate that allows the third party to manage assets while in the time before the assets are inherited by the beneficiaries. It is important to understand the different titles involved in a trust. The first is a trustor, which refers to the person who creates the trust. The next is the person who receives the assets of the trust, which is known as the beneficiary. Lastly, is the third party, known as a trustee that maintains the trust on behalf of the beneficiary.
If you have further questions about trusts and how they might fit into your estate plan, do not hesitate to reach out to our experienced estate planning firm to learn more.
What are the different types of trusts in California?
No one’s life circumstances are alike, which is why there are a number of different types of trusts available in California. If you would like to learn more about the various kinds of trusts, continue reading and reach out to an experienced estate planning attorney. The most common types of trusts used in California include the following:
- Revocable Trust: This is one of the most common choices because it can be modified, changed, or terminated at any moment without the approval of the beneficiary.
- Irrevocable Trust: This needs a trustor to revoke their rights when it is created, indicating they have no more rights to the trust and cannot change or terminate it.
- Irrevocable Life Insurance Trust: This permits a trustor to remove their life insurance from their estate so that a beneficiary is free from any taxes placed on the policy.
- Testamentary Trust: This is designed as part of a will and only is effective after the trustor passes away.
- Charitable Trust: There are two types of charitable trusts. A charitable trust provides the individual’s choice of charity to receive interest from their financial gift for a period of time. After it ends, the leftover may go to family or other beneficiaries. A charitable remainder trust allows charities to receive the trust’s assets at the end of its term. Until the end, the donor will receive interest in the gift.
- Special Needs Trust: This can be created for a loved one with a disability to ensure they receive the financial support they need throughout their life.
If you would like to create a trust, contact our firm today. Our legal team is prepared to help you navigate through each step of the process.
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.
