San Diego Revocable Trust and Estate Planning Attorney
A revocable trust can be useful for taking assets out of your personal estate and protecting them from certain kinds of taxes and other losses. They can also be an effective, highly structured vehicle for providing something for the next generation while leaving other options open for the future.
A revocable trust which is usually referred to as a living trust is just like it sounds. A trust is a legal vehicle consisting of a fund and documentation which outlines the assets you wish to protect and ultimately distribute, as well your intentions for how they will be managed in your lifetime and beyond.
As the originator of the trust, you can make changes to the trust until you and/or your spouse dies. This is not the case with irrevocable trusts, which provide less control over the assets in the trust once it has been established. An experienced estate planning and tax lawyer can help you understand whether a trust is appropriate for you.
Safeguarding What Matters To You
Janathan L. Allen, APC helps clients protect what matters most to them, including their families, their assets and their businesses. We work with individuals, married couples and domestic partners to execute the complete estate plan that will address not only the issues of wealth transfer and estate planning, but also asset preservation, liquidity, risk management, education and retirement funding, and charitable and philanthropic inclinations. We can work with you to leverage trusts such as:
- Living trusts
- A-B trusts, or marital trusts, which become irrevocable for the surviving spouse upon the death of the first spouse
- Life insurance trusts
- Special needs trusts that benefit loved ones
A revocable trust provides protections for property and assets while allowing them to be managed for the grantor’s benefit. In a revocable trust, assets and property can be moved in an out of the trust based upon the needs of you, the grantor. Every situation is unique. Trusts are highly customizable.
How Can a Revocable Trust or Living Trust Protect Your Assets and
Save a Lot of Time and Money in Probate?
How can a revocable trust or living trust protect the valuable assets you’ve worked to hard to build throughout your life and reduce or eliminate the expense and time associated with the process of probate? Why should anyone who owns a home in San Diego, or throughout California and across the United States have a trust?
Assets which are not protected by a living or revocable trust must be taken through the process of probate before they can be distributed to heirs and beneficiaries.
How expensive is probate?
Let’s use a common example. The median price for a single family home in San Diego is presently $850,000. It is important to note that the costs of probate are based upon the value of the asset, not the equity in that asset. What would it cost to simply take this house through probate? The costs are surprisingly high:
4% of the First $100,000 of the gross value of the asset, or $4,000
3% of the Next $100,000 of gross value, or $3,000
2% of the next $800,000 of gross value (in this example, $650,000 remains), or $17,000
1% of the next $9,000,000 (does not apply in this example)
Therefore, it would cost your estate $24,000 just to get your home through probate, and that is without the fees for an executor, attorney or the Probate Court itself. The process to take a home through probate usually takes more than a year. How do you think that might affect your heirs and beneficiaries?
If the home in our example was simply placed in a living or revocable trust for roughly 10% of that amount, the house would pass to your designated heirs or beneficiaries immediately and without any probate costs or tax liabilities.
Imagine how this might impact investment accounts, collections and other significant assets.
You Need an Experienced
Revocable Trust Attorney
Have you been thinking about establishing a living trust, family trust or other revocable trust?
Our partner, Janathan L. Allen, has decades of experience in estate planning and tax matters.
The integrated legal, tax, accounting and business advisory services inform important decisions associated with a simple trust to protect your home, or a comprehensive trust encompassing significant assets such as investment accounts, collections, a business or medical practice, real estate or other valuables.
The team at Allen Barron will guide you through the process of establishing your trust and estate plan while working to make the process a positive experience instead of a chore. Learn how transactional planning might impact your present and future success while protecting your assets and mitigating risk.
We invite you to begin this important process and contact Allen Barron or call today to schedule a substantive, free consultation at (866) 631-3470. Do you have a trust and estate plan?
Contact Us To Learn More About Allen Barron's Services
Offices of Allen Barron, Inc.
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San Diego, CA 92127
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San Diego, CA 92121
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