If the value of your assets exceed $ 150,000 or you own real estate, I strongly recommend forming a living trust. If you don’t have a living trust your loved ones will have to open probate proceedings upon your death to inherit your assets. Any type of assets could be used to fund the trust: cash, stocks, bonds, insurance policies, real estate, and artwork. When you have the trust, your beneficiaries avoid probate proceedings and during your lifetime you can change any terms of your trust. It may seem like something you to prolong, but you shouldn’t. Here are some more reasons why you should speak to a will and trust lawyer in Los Angeles right away.
A Way to Look Out for Your Kids
For many parents, having a living trust is a great way to protect your children financially. That’s especially true if your children are minors. By putting the money in a living trust, the money will be held for your kids until they’re old or responsible enough to take control of the money. Contrary to what some think, a trust doesn’t have to be given to someone entirely or in a “lump sum” once they hit a certain age. Instead, it can be doled out incrementally in a staggered fashion. Your kids could get some of the money at 28, 32, 36, and so forth.
Lessen Estate Taxes
It may be hard for some to believe, but estate taxes are still out there. A trust can make it possible to reduce or possibly even eliminate them. You want your assets to stay in your family or to be donated where you want. A properly drawn up living trust can ensure all of that and more. Many people also use trusts like these if they own real estate in more than one state as well.
A Way to Look Out for Yourself
You don’t have to be a parent to take advantage of a living trust. If you are single and don’t have children, you may still benefit from a living trust. Should you become incapacitated in some way and unable to make decisions for yourself, then a trust could be a great help. Your successor trustee could then manage the assets of the trust for your benefit. That way, your money would be there for you once you’re back up to speed.
Type of Trust Parties:
Some of the jargon around a living trust can be confusing or opaque.
Grantor: person who establishes the trust
Beneficiary: person who inherits your assists, person for whose benefit a trust is created
Trustee: person/company to whom the property is entrusted to manage for the benefit of beneficiaries
Contact a Will and Trust Lawyer in Los Angeles
Having a living trust does not protect you or your assets from the creditors. However, with proper planning it protects your beneficiaries from creditors’ claims. There are plenty of reasons to get a trust and we can talk to you about your options. Contact Tenina Law to speak to us about your will and trust. We are working around the clock to provide you with the proper legal advice that will protect you and your loved ones.