Moving property from one person to another can create many complex legal questions. A simple gift may be subject to taxation from the IRS. Similarly, moving property via a will and through the probate process means that an heir can only enjoy that property if debtors do not get to it first.
One way to avoid many of these complications is to create a trust. Receiving property from a trust will minimize the recipient’s exposure to taxation. At the same time, these contracts and the property within them are never part of the probate process. As a result, creating a trust can be an effective way to move property ownership to another with minimal interference.
A Rosemead trusts lawyer could help you create a trust that meets your specific needs. A knowledgeable estate planning attorney could draft documents that ensure the named heirs receive property, as well as bring valuable benefits to the trustor.
Why Should Someone Include a Trust as Part of an Estate Plan?
It is entirely possible and realistic to move someone’s property and assets to another after their death. Wills are powerful testamentary documents that can achieve this purpose in a satisfactory manner. However, wills are inflexible and require parties to endure the probate process before receiving their property.
Instead, a trust may be a better option. Parties can create these agreements at any time, and they may go into effect at any future date. Some people create trusts as substitutes for wills and transfer property upon the trustor’s death. Others use these contracts to distribute assets to others at a specific date in the future. In either case, the beneficiary of the trust should be able to receive the property with minimal legal interference. A Rosemead attorney could help individuals understand the role that trusts can play in effective estate planning.
Creating a Trust
The rules for creating a trust are simple but strict. According to California Probate Code §15200, a trust must have:
- A declaration from the property owner that they are holding the property in trust for another
- The trust must have property
- The transfer of property from an owner to a trustee
- A declaration in a person’s will that property is moving into a trust
- The trust must identify trust beneficiaries
In addition, the person making the trust must have the intent to do so. Another essential component of these contracts is the naming of a trustee. A trustee takes temporary control over the property and distributes it to the beneficiaries at the time specified in the documentation. This trustee has a duty to perform this role and not abuse the property in any way. A Rosemead lawyer could help you with the process of creating a trust.
Contact a Rosemead Trusts Attorney
Trusts comprise a significant portion of many modern estate plans. Not only can these documents ensure that your heirs receive their intended property, but these methods of transfer can often be quicker and less complex than traditional wills.
A Rosemead trusts lawyer could help you in this process. An attorney could identify your goals and needs, determine if this type of estate planning is right for you, and take the lead in drafting these documents. Contact our office today to learn more about how a skilled legal team could help you with your estate planning needs.