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.
Trusts are basically registered entities wherein the trustee holds property that belongs to another party (the settlor). It's usually created as a better alternative to wills, and primarily intended to transfer benefits to a named person or set of people (beneficiaries). This structure separates the ownership and control of the property from the benefits it generates.
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.
There's a common misperception that only high-wealth individuals need or are able to afford a living trust. But as any good Fairfield CA attorney will be able to explain in a free consultation, it's an affordable and highly useful tool even for ordinary people who simply want to pass on their home and life savings, insurance benefits and other such assets to their children. Not to mention the fact that wills can be challenged in court and are often overturned, but trusts are virtually impregnable.
Trusts are basically registered entities wherein the trustee holds property that belongs to another party (the settlor). It's usually created as a better alternative to wills, and primarily intended to transfer benefits to a named person or set of people (beneficiaries). This structure separates the ownership and control of the property from the benefits it generates.
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.
There's a common misperception that only high-wealth individuals need or are able to afford a living trust. But as any good Fairfield CA attorney will be able to explain in a free consultation, it's an affordable and highly useful tool even for ordinary people who simply want to pass on their home and life savings, insurance benefits and other such assets to their children. Not to mention the fact that wills can be challenged in court and are often overturned, but trusts are virtually impregnable.
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