One of the most unpleasant and unavoidable questions that you will need to ask yourself is what will happen when you pass away. Addressing this issue will make it easier to not only discuss your estate planning needs but to make preparations as well. Then you will be able to find a solution specific for your needs and put a plan in place for the future, not only discuss your current financial situation but make preparations for the disposition of your estate as it is something that a lot of people avoid doing.
For this reason, it is necessary for you to choose a great Glendale trust attorney. At Monahan Law Firm we have extensive knowledge and experience working with individual and business clients and we have helped them to come up with a plan that fits their specific needs be it to avoid probate or business succession planning.
If you want to ensure your family’s finances are protected and seamlessly pass to the beneficiaries after you pass then a comprehensive estate package is the best way to make sure it happens. Our comprehensive trust package includes a revocable trust, declaration, and certification of trust, pour-over will, durable power of attorney, and health care power of attorney together with other supporting documents to make sure your family is protected.
It is necessary for you to talk about your estate plans with your heirs or beneficiaries so that you can avoid any confusion that may come about after death. When you have a good estate plan in place it can help to protect you, your properties, and your beneficiaries. Talk to a trust attorney at Monahan Law Firm and let us help you come up with a plan.
Types of Trusts
An individual creates a living trust so they can be able to distribute their possessions to organizations and people after they pass away. A living trust will own the valuable assets that you put into the trust. Most types of properties can be put into a trust but it is important for them to have value. For example, you can include things like your jewelry, stocks, bank account, or even your home in the trust.
Through a living trust, you can designate a trustee who serves to manage the trust during the trustor’s life. The trustee is typically the same person as the trustor who creates the trust during his or her respective life and when that person passes a successor trustee is named who will step in to carry out the terms of the trust, to include conveying property to the rightful beneficiary.
Of course, each trust is not always the same and is catered to the specific needs of each person depending on their financial situation, whether minors are involved, whether any beneficiary may have personal, emotional, or financial issues, and even if there are certain people who you don’t want to receive any of your property.
There are two types of living trusts. They are revocable trust and irrevocable trust. Below are the types of differences between these two types of trusts.
Revocable Living Trust
This is one of the most flexible and popular living trust that an individual can have drafted. Most people that use a living trust usually refer to this document. The grantor of a revocable living trust can revoke or make amendments to your trust at any particular time before they die. They can either add more assets or properties to the trust, name a new beneficiary or beneficiaries, sell off the trust property and make other changes as long as they are alive.
After the death of the grantor, the trust becomes irrevocable. This means that it is not subject to change or cancellation. For the distribution of assets to occur your successor will have to follow instructions on distributing your trust’s properties.
Irrevocable Living Trust
An irrevocable living trust is a trust that you cannot change or cancel. Transfer of assets to an irrevocable living trust is done the same way as you would with a revocable trust. However, when your assets are transferred and held by an irrevocable trust you cannot sell your assets, update, instructions, or change beneficiaries.
This is not a common type of trust compared to the revocable trust. It is most often used by wealthy individuals that are trying to avoid taxes and creditors.
Differences Between a Trust and a Will
When you are thinking about your estate, it is important to know the difference between a will and a trust. A will is subject to probate and takes effect only when the testator passes away.
A trust, on the other hand, takes effect upon its creation. More importantly, a trust avoids the time and hassle associated with probate.
Probate is the judicial process of appointing personal representatives, validating certain documents, and transfer of assets that did not automatically transfer upon death.
When You Should Make a Living Trust
There are certain situations in which a trust will be important and useful to you. In the case where you are likely to become incapacitated in your lifetime and you are no longer able to manage your assets and affairs, there will already be a trust in place where you would have named a trustee to manage your properties. It can offer you great peace of mind when you do not have to be declared incompetent since you already have a person you trust in place to make the decisions for you.
If it is your will to have your assets distributed immediately after your death and without any interference a trust is your best option. A trust will help ensure that your bank accounts are not frozen after death and that there is no interruption in ownership and management of property.
Also, one of the times that it will highly favor your situation to have a trust is if you feel that after your death your property or assets may become contested after death occurs. If your plan is to disinherit a spouse or a child a trust will allow for those wishes to be fulfilled without the interference of the court. Doing this through a will can lead to the will being overturned after a lengthy court battle. However, you should note that the rules vary depending on the state.
Why You Should Have an Attorney Help With a Trust
Having a lawyer to help you with your trust means that the trust process will be quickly streamlined which is good for everyone that has a claim to the estate. A trust will also help avoid the litigation process.
This kind of legal process changes the course of people’s lives it makes more sense to go about the process with help of a legal representative.
Having a Glendale estate planning lawyer by your side that specializes in handling trusts will lessen your burden greatly. This is why our attorneys work diligently to create trusts for our clients.
If you are interested in creating a trust or you want to know more about the process and you are not sure where to start you should get in touch with our law firm today.