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Those who are unfamiliar with trusts should get the basics of trust law clarified before diving into specific types and their benefits. Understanding how the system works will make it easy to find a good living trust Fairfield CA attorney for creating a rock-solid structure. This will safeguard the family wealth while enabling a safe and tax-beneficial transfer of wealth to the next generation.
A property owner, known in this reference as the settlor, may establish a trust and transfer some or all assets owned into the custody of the trustee. It is a better and more powerful option as compared to wills, but the intention of distributing wealth to inheritors in a specified manner remains the same. In this case, a beneficiary or multiple named beneficiaries will be able to receive the benefits generated without having ownership or control over the property.
Trusts come in many different forms, but the classification that matters most in this case is whether it becomes active upon the death of the settlor or before. If it kicks in after death, then it's just a testamentary trust for executing the last will and testament. In this case, it will be the entity controlling a part or all of the deceased's estate.
Trusts that become active while the owner is still alive are called inter-vivos or living trusts. They can created as either revocable or irrevocable trusts. The structure, beneficiaries and other aspects of revocable trusts can be modified after creation.
Trusts that are created to be irrevocable don't allow the owner to retain this kind of control. The main reason inter-vivos trusts are so popular is because they help families avoid probate. While the rest of the estate faces the delays and costs associated with the probate process, the property held in the trust skates free because it does not fulfill the definition of being under the deceased's ownership.
These trusts are therefore the perfect way to pass on an inheritance without having a huge chunk of it go to the government. Another big advantage is that it allows people to retain control over property while letting others handle its usage. Put simply, trustees manage the wealth and implement growth strategies, minimize the tax bill, distribute benefits to beneficiaries, etc.
The property owner doesn't have to be bothered by all this. Despite this lack of personal involvement, the well-defined structure of these trusts and the duties of their trustees ensure that the property is taken care of and benefits provided in the exact manner the settlor demands. If it is revocable, it affords even more control since the owner may add or remove beneficiaries and make other changes as required.
It's understandable that many people think only high-wealth individuals need a living trust. But a free consultation with a Fairfield CA attorney will prove that it's actually very useful and beneficial for any family where the home, retirement accounts, life insurance benefits and other such assets are being handed over to the next generation. It's also a good idea because trusts are air-tight and cannot be overturned, while wills are easily challenged in court.
A property owner, known in this reference as the settlor, may establish a trust and transfer some or all assets owned into the custody of the trustee. It is a better and more powerful option as compared to wills, but the intention of distributing wealth to inheritors in a specified manner remains the same. In this case, a beneficiary or multiple named beneficiaries will be able to receive the benefits generated without having ownership or control over the property.
Trusts come in many different forms, but the classification that matters most in this case is whether it becomes active upon the death of the settlor or before. If it kicks in after death, then it's just a testamentary trust for executing the last will and testament. In this case, it will be the entity controlling a part or all of the deceased's estate.
Trusts that become active while the owner is still alive are called inter-vivos or living trusts. They can created as either revocable or irrevocable trusts. The structure, beneficiaries and other aspects of revocable trusts can be modified after creation.
Trusts that are created to be irrevocable don't allow the owner to retain this kind of control. The main reason inter-vivos trusts are so popular is because they help families avoid probate. While the rest of the estate faces the delays and costs associated with the probate process, the property held in the trust skates free because it does not fulfill the definition of being under the deceased's ownership.
These trusts are therefore the perfect way to pass on an inheritance without having a huge chunk of it go to the government. Another big advantage is that it allows people to retain control over property while letting others handle its usage. Put simply, trustees manage the wealth and implement growth strategies, minimize the tax bill, distribute benefits to beneficiaries, etc.
The property owner doesn't have to be bothered by all this. Despite this lack of personal involvement, the well-defined structure of these trusts and the duties of their trustees ensure that the property is taken care of and benefits provided in the exact manner the settlor demands. If it is revocable, it affords even more control since the owner may add or remove beneficiaries and make other changes as required.
It's understandable that many people think only high-wealth individuals need a living trust. But a free consultation with a Fairfield CA attorney will prove that it's actually very useful and beneficial for any family where the home, retirement accounts, life insurance benefits and other such assets are being handed over to the next generation. It's also a good idea because trusts are air-tight and cannot be overturned, while wills are easily challenged in court.
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