Orange County Wills and Trusts attorney
Estate Planning: wills, trusts, durable power of attorney, revocable trusts (living trusts), conservatorships, guardianships, to list a few.
Regardless of the size of your estate, planning is imperative. By employing a knowledgeable attorney, you can be confident that your property will go to the individuals you intended.
Estate planning guarantees your loved ones will not be burdened with needless red tape, setbacks, and financial uncertainty after your departure.
All estate plans should incorporate, the following important tools:
- Revocable trusts ("living trusts") to steer clear of probate (the court’s process by which the state recognizes the soundness of a will) and to manage their estates, during their lives and after they have departed.
Irrevocable Trust vs. Revocable Trust
What is an Irrevocable Trust?
An Irrevocable Trust is one that can't be modified or terminated without the permission of the beneficiary. The grantor, having transferred assets into the trust, effectively removes all of his or her rights of ownership to the assets and the trust.
What is a revocable trust?
It is the opposite of a "revocable trust", which permits the grantor to change the trust.
Estate and tax considerations are the main reasons for setting up an irrevocable trust. The advantage of this type of trust for estate assets is that it eliminates all incidents of ownership, successfully removing the trust's assets from the grantor's taxable estate. The grantor is also relieved of the tax liability on the income generated by the assets. While the tax rules will differ between jurisdictions, in most cases, the grantor can't receive these benefits if he or she is the trustee of the trust.
Assets held in the trust can include, a business, cash, investment assets and life insurance policies.
- A pour-over will, advanced health care directive and durable power of attorney are also recommended.
- Sometimes, a conservatorship or guardianship is activated to ensure decisions are made on one’s behalf.
Disclaimer: California Family Law Attorney Disclaimer