If you are thinking about protecting your assets, minimizing taxes, or ensuring a smooth transfer of wealth, setting up a trust may be one of your smartest moves. However, not all trusts are the same. Some offer flexibility, while others lock in long-term benefits. The key is knowing which one fits your situation.
At Amity Law Group, our experienced trusts attorneys help individuals and families confidently navigate their options. Whether you are looking to safeguard your assets, create a legacy, or ensure your loved ones are cared for, we can help design a type of trust in Covina that meets your unique needs.
Revocable vs. Irrevocable Trusts
When setting up a trust, you must decide between revocable and irrevocable. Revocable Living Trusts provide much greater flexibility because they can be modified or revoked.
A living trust allows your assets to pass directly to beneficiaries without probate. This means fewer legal delays, lower costs, and more privacy. If you own property or want a seamless transition of wealth, a living trust can be a valuable tool.
Irrevocable trusts cannot be easily changed but offer strong asset protection and potential tax benefits. Each serves a different purpose, so weighing your priorities before choosing is essential.
Testamentary Trusts
A testamentary trust is a type in Covina created through your will and takes effect after your passing. It helps control how assets are distributed to beneficiaries, such as minor children.
Special Needs Trusts
Another important trust is a special needs trust (SNT). This helps provide financial support for individuals with disabilities while preserving their eligibility for government benefits like Medicaid and SSI.
Because government benefits often depend on income and assets, without a special needs trust, leaving a direct inheritance could disqualify a loved one from receiving this vital government assistance.
Charitable Trusts
Charitable trusts allow you to support a cause while gaining tax benefits.
- Charitable Remainder Trust (CRT) – You or your beneficiaries receive income first, with the remainder going to charity.
- Charitable Lead Trust (CLT) – The charity receives income first, with remaining assets later passing to your beneficiaries.
These types of trusts in Covina are ideal for those looking to leave a philanthropic legacy.
Asset Protection Trusts
Another type of trust available in Covina is the asset protection trust. This can help safeguard your wealth from potential risks, including lawsuits, creditors, or long-term care costs. Professionals in high-liability fields, business owners, and individuals looking to protect assets for future generations often use these trusts.
Some asset protection trusts serve specific purposes. For example, a Medi-Cal Asset Protection Trust (MAPT) allows individuals to protect assets while maintaining eligibility for Medicaid benefits. Placing certain assets in a MAPT may reduce your countable assets for Medi-Cal qualification while ensuring your estate is preserved for your heirs.
Establishing an asset protection trust requires careful planning to ensure it meets your needs and complies with legal requirements. Consulting with an estate planning attorney could help you determine the right approach for your situation.
Learn More About the Different Types of Trusts in Covina
Choosing the right type of trust in Covina depends on your financial situation, goals, and legal considerations. Whether you are looking to avoid probate, protect assets, or secure your family’s future, working with an experienced lawyer could help you make an informed decision.
At Amity Law Group, our attorneys could guide you through your options and tailor a trust to fit your needs. Contact us today to get started on securing your legacy.
