Trusts are an extremely useful estate planning tool that can help individual protect assets, maintain eligibility for certain benefits, and transfer assets without them going through probate. In addition, while you may believe that establishing a trust is oniy something for the very wealthy, in reality, even people of relatively modest means can often benefit from establishing a trust.
To determine whether a trust is appropriate in your situation, you should speak to a qualified estate planning attorney. To schedule a consultation with one of our lawyers, call our office today or contact us online.
Revocable Living Trusts
A revocable living trust is a trust made while a person is still alive that can be revoked or changed at any time. These trusts allow a person to stay in control of his or her assets while he or she is alive. In addition, when the trust-maker passes away, the assets in the trust pass directly to the trust beneficiaries without having to go through probate. These characteristics make revocable living trusts an extremely use estate planning tool.
Irrevocable trusts differ from revocable trusts in that the person making the trust (the settler) is permanently giving up ownership of his or her property. These trusts are typically used to prevent the trust assets and income geneq:1ted by trust assets from affecting the settler’s taxes. In addition, assets in an irrevocable trust are protected from creditors.
Life Insurance Trusts
A life insurance trust is a specific type of irrevocable trust that is used to purchase and own a life insurance policy. The trustee of a life insurance trust cannot be the insured or someone in the immediate family. When the insurance policy pays out, the proceeds of the policy are not part of the decedent’s estate and are exempt from gift taxes upon transfer.
Call Us Today to Speak to a Tri-Valley Trust Creation Attorney
If you are considering forming a trust, it’s important that you speak to a qualified lawyer. At Randick O’Dea & Tooliatos, LLP, we are committed to helping individuals create trusts that achieve their estate planning goals. To schedule a consultation, call us 925.460.3700 or send us an email through our online contact form.