Trusts can be used to ensure the proper transfer of property while you are alive or after you pass away. These types of documents can be a powerful tool in your estate plan, as they come with many benefits for both you and your beneficiaries.
A knowledgeable attorney could explain more about the purpose of trusts and work to create documents that fit your individual needs. Do not hesitate to reach out to a trusts lawyer to discuss your situation.
Creating a Trust
According to the California Probate Code § 15200, there are multiple ways to form a trust. A trust can be made through any of the following methods:
- A transfer of property during one’s lifetime to another person as a trustee
- A transfer of property upon one’s death to another person as trustee
- A declaration by the owner of a property that the owner possesses the property as a trustee
No matter how it is formed, a trust will transfer an owner’s property to a trustee, who is responsible for that asset until a specified date. Once that date arrives, the trustee will distribute the property to the named beneficiaries.
Beyond these core concepts, trusts can take on many forms and serve several purposes. An experienced lawyer could provide more information about the legal requirements for creating a trust.
Benefits of Trusts
As a general concept, a trust transfers ownership of property from one person or entity to another. However, there are many other tangible benefits that set trusts apart from wills or other means of transferring property.
Avoiding the Probate Process
Trusts and the property within them are not subject to the probate process. This means that even if a trust only carries a legal effect upon a trust maker’s death, the beneficiaries of that trust do not need to wait for probate to conclude to receive their assets.
Another common use for trusts is to gain financial advantages. Property that sits in a trust is no longer an asset of the trust maker. This can help those people to avoid paying unnecessary taxes. Similarly, beneficiaries of trusts do not need to pay taxes when they receive the property, as opposed to the gift taxes that can apply to straight transfers.
Retaining the Benefits of a Property
Individuals can also use trusts to transfer property to another party while still retaining some of the benefits. For example, a personal residence trust can allow a person to remain in a home while surrendering legal ownership of the real estate. A skilled attorney could help identify an individual’s needs and decide what type of trust would best serve their interests.
Reach Out to an Attorney Today
Trusts are estate planning options that offer you a greater level of flexibility than traditional wills. Property that moves through a trust does not need to endure the probate process, nor is it subject to taxation.
Creating a trust requires the naming of property, the nomination of a trustee, and the identification of at least one beneficiary. Beyond this, a trust can serve almost any purpose that you can imagine. A trusts lawyer could help you to create a trust that fits your needs. Give us a call today to get started.