There are many ways that a person can use a trust in an estate plan. Trusts protect your assets from tax consequences and ensure that your beneficiaries receive the possessions of your estate after you pass away. A seasoned trusts and estates attorney could advise you on the benefits of these arrangements and help you develop a plan for your future.
An Irvine trusts lawyer could review your financial position and assess your needs before developing an estate plan. Creating a trust could ensure that your assets are appropriately distributed and that your wishes are honored after your death.
What is a Trust?
A trust is a legal document commonly used in estate planning. Typically, the creator of an estate plan transfers their possessions into a trust. Although the property may not be under the individual’s name after moving it to a trust, they can still control it. Each trust has a trustee that manages the assets in question. The representative must protect those assets and the rights of the beneficiaries while avoiding any conflict of interest.
In some cases, the roles of a trustor, trustee, and beneficiary might be split between multiple individuals. For example, a parent could create a trust to benefit their child and appoint a third party to serve as trustee. However, this approach is not always required or preferred. In other situations, an individual could fill more than one role. A person could create a trust for their benefit while also serving as a trustee. Because some trusts could be considered a separate entity that encompasses property, some people may be required to file tax returns for those type of trusts.
There are many ways that a trust could benefit an individual’s estate plan. However, complying with the legal requirements that apply to estate documents can be difficult and confusing. A knowledgeable attorney in Irvine could ensure a person follows proper guidelines when creating a trust to secure the future of their assets.
How Can a Trust Benefit Someone in Irvine?
There are several options for a person to choose from when drafting a trust and each has distinct advantages. For example, an individual that creates a trust could avoid harsh taxation on their property. To enjoy protection from tax liability, a trust must be irrevocable, meaning that once a person transfers their assets to a trust, they cannot reacquire their property. However, although they do not provide the same degree of protection from tax consequences, revocable trusts can be accessed and amended.
Trusts can also safeguard resources for special needs children, reduce the risk of high-income tax bills, or help a beneficiary avoid paying estate tax debt.
Ultimately, deciding which trust to implement will depend on a trustee’s goals. An experienced local attorney could evaluate the needs of an individual and advise them on what kind of trust might benefit them.
Contact an Irvine Trusts Attorney Today to Plan for Your Future
A trust could provide multiple courses of action for protecting your hard-earned assets and help ensure your beneficiaries have access to your property after your death. Trust law can be complex and drafting a plan on your own could be frustrating, but an Irvine trust lawyer could assist you with this important process and help you achieve your desired outcome. Call today to learn more about how authoring a trust might be right for you.