We invite you to listen to ABCast Episode 15 – A Primer on Trusts which is now available in our series of podcasts focused upon the legal, tax, accounting and business consulting services provided by Allen Barron, Inc. In this podcast, we begin with an overview of several key terms associated with a trust including: Trustee, Grantor, Beneficiary, Executor, Pour Over Will. Jan describes the purpose for and structure of a trust and why a trust is important for most people, especially if they own a home in San Diego or Southern California.
ABCast Episode 15 – A Primer on Trusts provides an overview of many of the types of trusts such as revocable or living trusts, irrevocable trusts as well as charitable and special needs trusts. The conversation begins with a basic overview of probate and why it is important to avoid the time and expense of probate as much as possible. A trust is a legal entity which not only protects the assets placed within it, the trust ensures the asset(s) pass to the beneficiaries at the time of passing in a timely, efficient manner. The cost of probate for the average home in San Diego (current mean price of $700,000) is almost $35,000 and will take a year or more to complete. A trust eliminates the need for an asset to go through the process of probate and provides direct access for the beneficiary based upon the intentions of the grantor – the person(s) who establish the trust. It can also reduce tax exposures for both the grantor as well as the beneficiary.
There are decisions to be made regarding the form of the trust itself, and this is driven by the intentions of the grantor(s) as well as the nature of the assets. For example, if the goal is to provide for the needs of a beneficiary with special needs, the structure of the trust would be different than the form of trust which would handle charitable intentions. Which trust is best for your unique circumstances? What is required to establish and maintain a trust and how often should an existing trust be reviewed?
Listen to ABCast Episode 15 – A Primer on Trusts and we hope you enjoy learning more about the important issues associated with reducing the time, cost and taxes associated with passing assets to a beneficiary. We invite you to meet with Janathan Allen and the experienced team at Allen Barron by contacting Allen Barron, or call 866-631-3470 to schedule a free consultation.
