It can be difficult to think about the future, but it is important to plan ahead. Everyone is different, therefore, when it comes to estate planning, everyone will take a different path. One way you may want to plan for your estate is by setting up a trust. Read on to learn more about trusts in California, and how you can go about creating one.
What is a Trust?
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 person who receives the assets of the trust is the beneficiary. There is also a third-party involved. This third-party, known as a trustee, manages the trust on behalf of the beneficiary.
What are the Types of Trusts?
- Revocable Trust
- This type of trust can be modified, changed, or revoked at any time, without permission of the beneficiary.
- Irrevocable Trust
- Once an irrevocable trust is created, the trustor must nullify his or her rights to the trust, and therefore cannot alter or terminate the trust.
- Irrevocable Life Insurance Trust
- This type of trust is available for individuals who wish to remove their life insurance from their estate. This may be done so that beneficiaries of the estate will not have to pay the taxes placed on the insurance policy.
- Testamentary Trust
- These trusts are included in the trustor’s will. It will only become valid once the trustor has passed away.
- Charitable Trusts
- This trust allows the charity of the trustor’s choice to receive interest from their financial gift over time.
- Special Needs Trust
- This will allow a loved one with a disability to be provided with the financial support he or she will need throughout life.
How do I Create a Trust?
If you wish to create a trust, it is important to reach out to a skilled attorney. A trust must be completed and filed correctly in order to be considered valid. When it comes to estate planning, a lot can go wrong if these documents are not handled correctly, and may result in major issues down the line. When you are ready to start planning for your estate, please do not hesitate to reach out to The Law Offices of Yacoba Ann Feldman today.
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. 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.