Transferring assets between parties is one of the core functions of an effective estate plan. While the traditional means to do this, the will, only applies after a person’s death, a trust can accomplish a similar goal at any time in the future. This flexibility means that, for instance, a trust maker can provide support for another person or charity at any point, while also taking advantage of some personal benefits.
When considering a trust for you family needs, you boost your chances of minimizing complications when you work with one of our skilled estate planning attorneys. A Huntington Beach trusts lawyer could explain which assets you can place into these arrangements, nominate qualified trustees, and maximize the impact of the document for all involved parties.
Trust Formation and the Role of Trustees
There are no specific forms that a trust needs to take, but there are a few elements that each document must contain. According to California Probate Code § 15200, people create trusts by having the intent to do so and by naming a trustee to take temporary control over these assets.
The trustee is a vital player in all these documents, and a trust cannot go into effect without this person or entity being transparently named. A trustee has an obligation under the law to take temporary control of trust assets. They must take all reasonable steps to protect these items and ensure that they retain their value. Finally, trustees must distribute trust assets to the named beneficiaries at the appointed times, according to the language of the document. This could be at any moment in the future, but it often happens when the person who authored the trust passed away. To avoid complications with creating a legally valid trust, an individual should work with a proactive attorney in Huntington Beach.
What Makes Trusts So Important?
Trusts are a crucial part of estate planning because they protect assets, prepare a family for the future, helps to avoid probate and in some situations, limit tax liability.
Additionally, using a trust to lower one’s tax liability and ownership of assets could also heighten eligibility for powerful government benefits. For example, people with the foresight to place a home into a trust can shield that property from valuation when the time comes to take advantage of Medi-Cal and also avoid Medi-Cal recovery.
Finally, other people use trusts as an intelligent alternative to wills. Under state laws, all wills must have their validity established during the probate process. This can be both timely and costly. By creating a trust that distributes assets upon the trust maker’s death, it is possible to decrease estate taxation, avoid probate and shorten the time that heirs must wait to receive their property. A trusts lawyer in Huntington beach understands the many benefits of these arrangements and could determine whether drafting one would be right for an individual’s unique situation.
Call a Huntington Beach Trusts Attorney to Get Started
Trusts are a modern and popular way of transferring assets from one party to another. They can go into effect at any time and can serve to shorten or simplify probate. In addition, placing items in a trust can lower your tax burden or help you take advantage of powerful government programs.
If you need further clarification about how these documents work, Huntington Beach trusts lawyer could explain how they could become an integral part of your estate plan. If this choice is right for you, they take the lead to draft documents that identify your beneficiaries, nominate a trustee, clearly identify property, and meet your specific goals. Speak with our knowledgeable team today to learn more.