- September 5, 2022
- Posted by: Sadi
- Category: Uncategorized
A living trust is not often discussed by many at social gatherings. But, it is something that everyone should know. You create a living trust when you are alive. It is only a document until you sign it. Once you put your signature on it, the legal document becomes enforceable.
You must also know that a living trust is of two kinds, i.e. revocable and irrevocable. Unlike an irrevocable trust, you can amend a revocable trust before it comes to action. A majority in the USA choose to go with a revocable trust. You need to be extra cautious while making an irrevocable trust and thoroughly understand its terms and condition as you will not be able to change it at all.
For an individual having assets of over $200,000, a trust is necessary. This legal tool is crucial for parents who need control of asset distribution among their kids, who may be young or are from their previous marriage.
A registered paralegal or LDA can help prepare the legal documents for a living trust. When you have a properly documented living trust, it can address many issues. Here are a few reasons to consider living trusts in California.
Minimize Estate Taxes
Certain types of trusts can minimize or eliminate (in some cases) estate taxes. To get this benefit on your taxable estates, you must transfer them to the trusts. Almost every kind of trust considers tax planning.
Avoid Probate Court
The proceedings of a probate court are generally long, hectic, and expensive. But, if you have a trust, you can ensure that your estate avoids this procedure. You can save your loved ones from experiencing the difficulties of court during the challenging times in the event of your death.
Get Control of your Assets
You can get a certain level of control on your estate that a will cannot provide. You can structure your trust in a way that lets you decide when and how to distribute your assets. This way, you can avoid your young children getting the entire property at once. You can create trusts keeping the life milestones in mind and allow them to receive some funds after graduation and some after marriage.
Require Low Maintenance
Unlike your will, you won’t have to maintain your trust once created. You need to update your estate plans after every new life event, like a childbirth in your family or purchasing a new house or other assets. But, you need not amend your living trust after creating one.
Fair Divisions of Assets
You may find difficulties in splitting your assets among beneficiaries during estate planning. But when you create a living trust, you can distribute the complex assets the way you want in the event of your death. For instance, if you have a vacation home that you don’t want to give to just one person, a trust can be good way to do it.
Help4You is a California-based legal document preparation services provider having twenty years of experience. Our paralegal services can help you draft accurate and most efficient paperwork required for a living trust at a reasonable price. Although we have offices in Huntington Beach and Garden Grove, California, we serve in many other counties of the state.