It’s not easy for any individual to start thinking about how to best protect their assets in the event of an unforeseen incident. Still, it’s a conversation that every responsible adult should have with themselves and their family. Life is unpredictable, and what to do with your hard-earned assets in the event of your passing gives some power back to you and your loved ones during a challenging time.
Working with an experienced trust attorney is the best way to create a comprehensive estate plan that can withstand challenges. At Bravo Law, our team of legal professionals has experience setting up trusts that can help you protect your property and wealth from creditors, lawsuits, and estate taxes.
A trust is a legal arrangement where one party (the trustee) holds property or assets on behalf of another party (the beneficiaries). The trustee is responsible for managing the trust property and distributing it according to the terms of the trust agreement. Trusts can work well for a variety of purposes, including asset protection, estate planning, and tax planning.
Many different types of trusts protect life’s most valued possessions, each with its unique benefits and drawbacks. The kind of trust that is right for you is going to depend on your specific needs and goals. Some of the most common trusts include:
A trust can be created during a person’s lifetime, or it can be created after someone dies. The person who creates the trust is titled either the settlor, grantor, or trustor. The trustee is the person who manages the trust. The beneficiary is the person who gets the benefit from the trust.
A trust can be created for any purpose. The most common purpose is to provide for someone’s financial needs. For example, a trust can be used to:
A trust is created by a written agreement. The agreement must name the settlor, trustee, and beneficiary. It must state the purpose of the trust and how the trust property will be managed.
The settlor transfers property to the trustee, who then manages the property and ensures the beneficiary receives what the trust says they should. The trustee has a legal duty to manage the trust property carefully and in the beneficiary’s best interest.
The settlor can be the trustee and the beneficiary. However, it is more common for the settlor to appoint someone else as the trustee. The trustee can be an individual, a bank, or a corporation. The trustee must be someone the settlor trusts to manage the trust property. The beneficiary can be an individual, a group of people, or a charity. The beneficiary does not have to be named when the trust is created. The settlor can change the beneficiary at any time.
A trust can last for a specific period of time, or it can last forever. A trust that lasts forever is called a perpetual trust. When the settlor dies, the trust becomes irrevocable. The trustee must follow the terms of the trust agreement. The beneficiary has a right to the trust property. The trustee must keep accurate records of all trust transactions. The records must be available to the settlor and the beneficiary to review at any time.
There are many benefits of creating a trust in San Diego, CA, including the following:
There are many other benefits of trusts, and the best way to learn more is to speak with an experienced San Diego estate planning attorney. At Bravo Law, we have extensive experience helping clients with their estate planning needs, including the creation and administration of trusts. We can help you understand your options and ensure your trust is properly created and funded. Contact us today to schedule a consultation.
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