Simi Valley Trust Lawyer
Setting up a trust can be an effective way to distribute certain assets. Essentially, trusts are fiduciary arrangements in which some third party manages specific assets on behalf of one or more beneficiaries. While trusts can be set up in various ways (with various beneficiaries), in general, some of primary benefits of setting up trusts include that they:
- Can help beneficiaries avoid probate
- Can provide for a more efficient transfer of assets to beneficiaries than would be available via a will.
Below is an overview of some of the most common types of trusts that can be set up in the state of California.An Overview of California Trusts
- Living trusts – Also referred to as family trusts, living trusts are devised during a person’s lifetime to manage property, reduce tax obligations and/or enjoy other financial benefits.
Revocable trusts – These are trusts that can be altered or revised during the trustmaker’s lifetime. Upon the passing of the trustmaker, revocable trusts become irrevocable.
Irrevocable trusts – With these trusts, a trustmaker can also enjoy certain tax and other financial advantages; however, once irrevocable trusts have been authorized, their terms cannot be as easily changed as revocable trusts. In fact, if changes need to be made to irrevocable trusts, litigation may be necessary.
Special needs trusts – These types of trusts are devised for the benefit of people with mental and/or physical impairments (i.e., people with special needs). In general, these trusts can provide additional financial support to those with special needs without disqualifying them for important government aide (like, for instance, disability benefits and/or Supplemental Security Income, SSI).
Bypass trusts – Also referred to as married A-B trusts, bypass trusts involve developing two living trusts, one for each spouse in a marriage. Upon the death of one spouse, the assets of the decedent that have been placed in his/her trust will be passed directly to the surviving spouse’s trust without being subject to estate and/or gift taxes.
Testamentary trusts – These trusts are created by wills, and they take effect when a willmaker has passed away. Generally, testamentary trusts address assets generated by someone’s death, such as the proceeds of a life insurance policy or a wrongful death settlement.
There are a number of other types of trusts that can be devised in California, and your circumstances and needs will play an important role in determining which options are best suited for you.Simi Valley Trust Lawyer at the Law Offices of Darrell C. Harriman
Are you ready to develop a trust and explore your other estate planning options? If so, an experienced Simi Valley trust lawyer at the Law Offices of Darrell C. Harriman is here for you, ready to help. Since 1980, our San Fernando estate planning attorney has been dedicated to providing his clients with:
- Personalized, highly responsive service
- Superior representation
- The best estate planning solutions.
To learn more about your best estate planning options, as well as how we can help you, contact our firm by calling (818) 892-7093 or by filling out the contact form on this page.
From our offices based in North Hills, we provide the highest quality legal services to our clients throughout the San Fernando Valley, Simi Valley, Santa Clarita and the greater Los Angeles area.