Trusts are an excellent way to ensure the seamless transfer of property either during your lifetime or after your demise. As a crucial element of your estate plan, trusts come with numerous benefits for both you and your beneficiaries. Our experienced attorneys at Law Offices of Terrence Fantauzzi can provide in-depth explanations about trusts and create tailored documents to fit your unique needs. Don’t hesitate to reach out to Law Offices of Terrence Fantauzzi at (909) 552-1238 for a consultation.
Creating a Trust
Under the California Probate Code § 15200, trusts can be established in multiple ways:
- A property transfer during one’s lifetime to another person as trustee
- A property transfer upon one’s death to another person as trustee
- A declaration by the property owner that they hold the property as trustee
Regardless of the formation method, a trust transfers an owner’s property to a trustee, who safeguards the asset until a designated date. Upon this date, the trustee distributes the property to the specified beneficiaries.
Trusts can take many forms and serve various purposes. Our seasoned lawyers can offer more insight into the legal requirements for creating a trust.
The Benefits of Trusts
While the general concept of a trust revolves around transferring property ownership from one entity to another, trusts offer several tangible benefits that set them apart from wills or other property transfer methods.
Bypassing the Probate Process
Trusts and their associated properties aren’t subject to the probate process. Thus, even if a trust only takes effect upon the trust maker’s death, the trust beneficiaries do not need to wait for the probate process to conclude to receive their assets.
Tax Advantages
Trusts are frequently used for financial benefits. Since the property within a trust is no longer an asset of the trust maker, it can help individuals avoid unnecessary taxes. Likewise, beneficiaries of trusts aren’t required to pay taxes when receiving the property, contrasting the gift taxes applied to direct transfers.
Retaining Property Benefits
Trusts can also enable individuals to transfer property to another party while maintaining certain benefits. For instance, a personal residence trust permits a person to stay in a home while relinquishing legal ownership of the real estate. Our skilled attorneys can help identify your needs and determine the best type of trust for your interests.
Enlist the Help of an Expert Trusts Attorney Today
Trusts offer a level of flexibility in estate planning that surpasses traditional wills. Property that is distributed via a trust bypasses the probate process and is exempt from taxation.
Creating a trust involves the designation of property, the nomination of a trustee, and the identification of at least one beneficiary. Beyond these fundamental steps, a trust can serve virtually any purpose you envision. Our trusts lawyers at Law Offices of Terrence Fantauzzi are ready to assist you in creating a trust that aligns with your needs. Contact us today at (909) 552-1238 to get started.