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What are the benefits of a trust?
1. Wealth Management
You have complete control over when and to whom distributions are made based on the parameters of the trust you create. You can also establish a revocable trust, so the trust assets remain available to you during your existence while determining to whom the residual assets will pass after your death, even if there are offspring from many marriages.
2. Legacy Protection
A well-drafted trust can shield your inheritance from the claims of creditors and the inexperienced handling of funds by your heirs.
3. Savings on fees and taxes
A trust may allow assets to move outside of probate and remain confidential, avoiding court fees and taxes.
Living Trust in California
Another option for passing on your wealth is to establish a trust. Those who are particularly vulnerable in the family can rely on the provisions of a trust arrangement. If you ever end up in financial trouble, your assets can be safeguarded in a living trust to keep them out of the hands of creditors.
Will vs. Living Trust in California
Both wills and trusts can be established to pass assets on to beneficiaries after death.
How do Living Trusts and Will differ from one another? The settlor or trustor must put the property in the trust (typically by changing the title), select a trustee to supervise the assets, and designate at least one beneficiary. When creating a trust, you can act as the trustee. Unless stated otherwise, a trust established while you are alive is revocable.
What is an Irrevocable Trust?
A trust is irrevocable if its provisions cannot be changed, modified, or terminated without the express approval of the beneficiary or beneficiaries named in the trust. Protecting assets, lowering estate taxes, and qualifying for and receiving government assistance—are all possible with an irrevocable trust.