A Living trust attorney in Los Angeles helps individuals, families and businesses make provisions for the future after the grantor, the person who created the trust, dies. How do you know if you need a living trust? Generally, if you have real property and/or other assets of $150,000 or more than you probably need a trust.
Types of Living Trusts
There are two basic types living trusts: revocable and irrevocable. An estate planning attorney can help you determine which type best fits your needs. What are the differences and advantages/disadvantages to each?
Benefits of Revocable Trust
The type of living trust you choose, greatly depends on your estate. Here are some benefits of a revocable living trust:
- Remains in the possession of the grantor (the person who created it)
- Real property, business assets and investments can be included in the trust
- As grantor, you can choose the trust administer and can change to someone else along the way
- A pour over will can be added to the trust. Upon the decedent’s death, any assets not residing in the trust are immediately transferred to the trust (e.g., real property, vehicles, investment)
- The trust can be changed as events in your life happen including births, deaths, marriages, etc.
- Income and assets are protected if the grantor becomes incapacitated
- Protects privacy as the contents of a trust are not in the public domain as is a will
Disadvantages:
- Does not offer asset protection
- Included in estate value for taxes
Benefits of an Irrevocable Trust
If you have a large estate and need asset protection or a reduction or deferment in taxes, then an irrevocable living trust may be your best choice. Here are some benefits of this trust:
- Can include real property, business assets and investments
- Provides asset protection
- Eliminates estate taxes, however, the current limit on estate taxes for a married couple is $10.6 million which excludes a large segment of people
- Reduces or defers income taxes
- May protect assets from creditors, if the trust was established prior to the credit issues
- Protects assets in cases of professional liability
- Transfer of money to a charity allows for a charitable income tax reduction if the person who created the trust is still alive or a charitable estate tax reduction if transferred following the death of the individual
Disadvantages
- Once created, anything placed in the trust no longer belongs to the grantor and is in the hands of the trust administrator.
- The trust, or its administrator cannot be changed.
What Does a Trust Include?
A Trust and Pour-Over Will, Power of Attorney, and Advanced Healthcare Directive, if desired. When you hire a living trust attorney you will need to provide the following information:
- A list of immediate family members
- A list of assets
- A list of special (itemized) gifts if desired and remainder gifts to beneficiaries
- A list of Trustee (administrators) and successor Trustees
To determine which type of living trust will most benefit you, your family, your investments or your business holdings, it’s a good idea to consult a living trust attorney who can give you the pros and cons suited to your specific situation.
Richard T. Miller, an experienced living trust attorney in Los Angeles, can help you create a revocable and/or irrevocable living trust, offering you the peace of mind that comes with speaking to a seasoned living trust lawyer. He has been helping individuals and families make sense of their trusts, estate planning, and probate issues for years and can help you too.
Call Richard T Miller, Esq. at (818) 994-8234 now for a consultation.
