Trusts 2018-03-16T20:42:44+00:00

Trusts

When planning for the future of your family, it’s important to invest in a trust, which is an arrangement allowing a third party to hold and manage your assets on behalf of your beneficiaries. Along with reducing estate taxes, administration fees and probate costs, trusts help minors, the mentally disabled, and family members otherwise incapable of dealing with financial matters with the management of your assets.

Some additional benefits of a trust:

  • Set up your own rules for how the trust is operated.
  • Designate the purpose of the trust.
  • Designate the amount and type of property the trust will have.
  • Designate how long the trust will last.
  • Designate the beneficiaries.
  • Designate how much the beneficiaries will receive and when they’ll receive it.
  • Property and assets are held for longer periods of time.
  • Can distribute assets via stages rather than all at once.
  • May include both separate and community property.

Although trusts allow for greater flexibility in the distribution of income and assets than a will, trusts should never be used in place of a will; they should always be created in conjunction with a will to maximize the division of assets and property, as a will covers assets that are not placed within the trust.

King Law Firm Attorneys at Law, Inc. understands the complexities of creating a trust and makes sure every client is given the appropriate attention in relation to their specific circumstances. There are several types of trusts that can be created and it’s always good to know what to expect before doing so. King Law Firm Attorneys at Law, Inc. can walk you through the process, as well as help make sure your decisions are to the benefit of you and your beneficiaries.

Trust Administrators

Types of Trusts

Trusts are set up in three different ways:

Living Trusts

A living trust is not subject to probate, which means the greater the asset value of the trust, the more it will benefit you. Trusts are used to reduce or eliminate court proceedings, delays and publicity associated with probate hearings. You may also appoint yourself as the trustee, or name a successor trustee (which can be either a person or an institution) if you become unable or unwilling to do it yourself.

When you set up a trust, the assets named in the trust are transferred to the trustee (also known as funding the trust) and are then administered for your benefit as you live, and distributed when you die. Tasks, such as transferring bank accounts, stock certificates and real estate deeds can be time consuming, but generally are more cost-effective than dealing with those matters during probate.

It is also beneficial to have a trust set up should you become incapacitated or when dealing with asset management in the case of community property, or assets purchased or collected after marriage or that are part of a legal domestic partnership. Obtaining a durable power of attorney for property management is also highly recommended, as it will help when dealing with assets not transferred to a trust prior to becoming incapacitated, as well as any assets that are received afterward, and allows for the agent to act on your behalf in other financial matters until your death when the power of attorney is terminated.

King Law Firm Attorneys at Law, Inc. can advise you on what’s best for you when deciding to set up a trust.

Contact us for a consultation and get started on protecting your family’s future.

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