The primary purpose of an estate plan is to ensure the transfer of assets from one party to another. While this may occur after a person’s death, modern estate planning allows for the transfer of valuables at any time. The most effective way to ensure this movement of property is to create a trust. Placing property into a trust allows another individual to take possession of it and may also offer tax benefits.
An Orange County trusts lawyer could discuss your current estate planning needs and explain the benefits of creating a trust. A seasoned legal team member could identify your assets, help you choose a beneficiary, and draft your estate documents accordingly.
The Benefits of Creating a Trust
People who create a trust usually do so to ensure the seamless transfer of property to a beneficiary. However, trusts also offer advantages to the creators. Understanding the benefits of estate planning can help individuals determine whether placing property into a trust is the best option for them.
Benefits for Others
Transferring property through a trust has several advantages for beneficiaries. For example, through an end-of-life trust, assets can be transferred outside the probate process. In addition, the receivers of these assets can take control of them without being taxed.
Creating a Trust Also Helps the Makers
There are many benefits to creating a trust. If an irrevocable trust is created, the grantor no longer owns the property and are not required to pay taxes on those items. In addition, creators do not need to count that property as part of their overall assets. Often, people use trusts to become eligible for Medicaid assistance when they move into a nursing home. Individuals may also use a trust to protect their property from potential seizure or claw-back when facing costly medical care.
An experienced attorney in Orange County could provide more information to a property owner about the benefits of transferring assets into a trust.
How is a Trust Created?
Trusts are extremely flexible documents. Therefore, there is no specific form that these documents must take under state law. However, several common elements must be included in a trust. Following the relevant rules could help trustees avoid potential confusion in the future.
According to California Probate Code § 15200, the easiest way to create a trust is to have the intent to do so and place assets into the hands of a trustee. For example, a simple document stating that a person wants “Ms. X” to take control of “Property A” and give it to “Mr. B” after one’s death could suffice as a trust.
Although the process can be simple, there are also several important nuances. It is essential to name property in a trust with as much specificity as possible. Similarly, a property owner should name a beneficiary as clearly as possible. It is also crucial to select a trustee with both the willingness and ability to maintain the property while it is in their care and distribute the assets as mandated by the trust. A skilled lawyer in Orange County could ensure that a person has the correct documents to create and execute their trust.
Contact an Orange County Trusts Attorney Now
Choosing the most effective way of transferring assets to another party is a central part of estate planning. For many, trusts can make the process less stressful and inexpensive.
An Orange County trusts lawyer could provide more information about trusts and help you understand your options. Call today to set up an appointment and learn more about the process.