Trusts are a legal way for people to set aside their assets for a particular purpose. When you have a living trust that gets initiated when you are still alive, it offers flexibility and control of the estate should you become incapacitated or die. There are several benefits of having a living trust, and a suitable living trust attorney in Chula Vista, CA, will be able to assist you through the process of setting one up.
What Is A Living Trust?
Living trusts are a form of legal estate planning tool you use to detail how your assets must be distributed or used should you pass away or become incapacitated. The document specifies the legal relations between three groupings, including:
- Grantor – this is the person that funds the trust
- Trustee – this is the one that manages the trust
- Beneficiary – this is the person that receives the assets or proceeds of a trust
Along with will and estate planning, a living trust helps you control assets while you are still living, yet pass them along to a trustee at times where beneficiaries can get paid under certain conditions. The conditions outlined will either be specific or vague but allow for precise control over assets should you pass or no longer be able to make decisions. Due to the complexity involved, it is often best to work with experienced trust preparation lawyers to handle all the details.
There are plenty of reasons why someone should arrange assets and outline how they get handled upon death. The best estate planning lawyers will tell you this is crucial for your surviving spouse and any beneficiaries while navigating an emotional and tough time. You can consider putting many assets into a living trust when working with the best estate law firm, such as bank accounts. This allows for your loved ones to be cared for right away.
By the same token, your living trust attorney in Chula Vista, CA, will go over some of the assets you do not want to be placed into the trust. These may include options like life insurance policies and retirement accounts. Along with other tax-deferred accounts, these could lose tax benefits if you place them into a living trust.
Why Consult With Will And Trust Lawyers?
Carefully consulting with an experienced and licensed professional ensures that all your assets get the best possible treatment from a tax standpoint. It is also crucial that you understand the survivability limit, which dictates that the trust might no longer be valid if the settlor or grantor passes within a specific timeframe.
Should you fail to have your assets in a living trust or outlined in a will, your loved ones will have to go through all of the steps for probate. This is a court-led process for handling an estate after someone dies.
Do you want to know more about hiring a living trust attorney in Chula Vista, CA? There are many benefits from having a trusted lawyer when trying to plan out your estate and divide up all assets. Get in touch with us at Broaden Law LLP by calling (619) 567-6845 for a free legal consultation.