What is a trust and how can it help you to protect your investments and assets such as your home? A trust is a separate legal entity that holds property and assets for the benefit of another party. In most cases a trust is utilized to reduce liabilities and a creditor’s access to your assets. A trust is an important estate planning tool that helps San Diegans to avoid the time delays, costs and taxes associated with probate. Here in California, the cost of taking a normal home through probate may exceed the cost of creating a nominal trust by tens of thousands of dollars. The trust also ensures that assets are passed on to heirs and beneficiaries based upon your specific instructions after your passing.
There are several different types of trusts including (but not limited to) charitable, special needs, living, grantor, disclaimer, revocable and irrevocable. A revocable trust is simply a trust that allows the owner of the trust known as the “grantor” or “settlor” to make changes, updates, modifications or revoke the trust altogether. An irrevocable trust passes the assets from the present owner to the trust itself, and they cannot be removed, revoked or reclaimed.
Trusts can be used to provide for loved ones, special needs children, causes that are near and dear to your heart and even pets. Trusts are usually deployed to reduce taxable burden to the parties who receive the benefit of the trust proceeds known as the “beneficiaries” and to make it easier for the assets to pass from one generation to another. A trust can be used to help senior citizens to qualify for important Medi-Cal benefits.
What is a trust and why should this be a part of any California estate plan? A trust is a valuable legal vehicle that saves homeowners tens of thousands of dollars while allowing important assets such as the family home or business ownership to pass quickly and efficiently from one generation to the next. A trust protects your assets from creditors and ensures that your wishes are carried out to the letter after your passing. If you would like to learn more about how a trust can help California homeowners or if you should review and update your trust we invite you to call 866-631-3470 for a free consultation.