If you live in California and you want to create a trust, Alice A. Salvo can help. As a Certified Specialist in trusts, estate planning, and probate law, Ms. Salvo knows how to devise estate plans for any goal.
Ms. Salvo has over 25 years of experience handling trusts and estates in California – and she wants to work with you today.
For a free initial consultation with our Los Angeles trust attorneys, contact us now.
What is a Trust?
A trust is a type of legal relationship which allows a settlor to pass their assets to a third party (a trustee). Trusts come with many benefits, including protecting assets, preventing probate, and tax benefits.
Three parties are involved in a trust: a settlor, a trustee, and a beneficiary.
The settlor forms the trust and decides which assets to place into it. The trustee manages the assets on behalf of a beneficiary. The trustee must always act in the best interests of the beneficiary and look after the assets held in trust.
- A group of trustees may work together on the beneficiary’s behalf.
- Often, trusts have more than one beneficiary.
- Trustees are often close friends or family. An attorney can also act as a trustee.
- Trustees can seek legal and financial advice if they need help performing their duties.
- A trustee can also be a beneficiary. However, they must be impartial when managing the trust.
There are two major types of living trusts:
Revocable trusts can be altered at any point. Revocable trusts are more flexible than irrevocable trusts. In a revocable trust, a trust maker legally retains a small amount of control over assets.
Irrevocable trusts are harder to alter than revocable trusts. However, in some cases they can offer greater asset protection than a revocable trust.
A lawyer can help you determine if you should create a revocable or irrevocable living trust:
How are Trusts Formed?
There are several steps to setting up a trust:
- The settlor decides which assets to place in the trust.
- The settlor names at least one trustee. If they appoint themselves as a trustee, they should appoint a successor in the event of their death.
- Beneficiaries should be named. These individuals, or organizations, will receive the assets.
- A formal trust document is drawn up and signed. This ensures the trust is valid
For more information, or to set up a trust, contact our Los Angeles trust lawyer, Alice A. Salvo.
Why You Need a Trust Attorney in Los Angeles
People in the process of estate planning should enlist the help of an experienced trust and estates attorney.
Without a trust, California estate determines what happens to your assets when you pass. Assets, including money and real estate, may be distributed against your wishes.
A Los Angeles trust attorney can help you create a trust which aligns with your wishes.
There are many benefits to working with a trusted law office when you begin the estate planning process.
- Creating a trust can be confusing. Appointing a trust attorney helps you avoid many common pitfalls associated with trust creation and management. An attorney can help you manage the paperwork that comes with creating a trust.
- Creating a trust prevents your separated spouse from inheriting your assets. If you are not divorced, a spouse may inherit your assets even if you are separated.
- According to California law, if your estate is worth over $150,000 it must go through probate. However, assets held in a trust do not have to go through probate.
- Without a trust, your spouse may lose out on inheriting assets. Your assets may be split in a way you do not want between your spouse and children.
A living trust attorney near you will explain your options. Our goal is to help you create a trust reflecting your wishes.