Living Trust Lawyer Folsom CA
One of the most popular tools that Folsom CA living trust lawyers recommend to clients is the use of irrevocable trusts. These trusts enable clients to protect their assets from creditors, lawsuit judgments, and other entities that threaten the seizing of these assets.
At Yee Lee Group, our Folsom CA living trust lawyers have been advising clients on asset protection options for years, and are available to help your family achieve the same level of protection.
Asset Protection Options
As mentioned above, trusts are one of the most popular options that are chosen as a way to protect property and assets. A living trust lawyer from Folsom CA shares that there are two categories of trusts: revocable (also called a living trust) and irrevocable. Both trusts are aptly named based on what you can and cannot do. A revocable trust is typically under the control of the grantor (the person setting up the trust) and can be changed or dissolved at any time. With an irrevocable trust, once it is established, it cannot be changed or dissolved.
Our Folsom CA living trust lawyer knows that you have a hefty decision to make when choosing between the two. Although both revocable trusts and irrevocable trusts are solid estate planning tools, revocable trusts do not offer the same tax advantages or asset protection that irrevocable trusts do. Assets placed in a revocable trust may be subject to estate taxes, as well as income taxes that may be owed from interest, dividends, or any other type of profit generated by the trust. With an irrevocable trust, the person forming the trust is no longer considered the legal owner of the trust contents and has no tax obligation to any profits the assets may generate.
For business owners, our Folsom CA living trust lawyer can present you with different entity options that clients have to choose in order to protect assets. These options include Limited Liability Company (LLC) and Family Limited Partnership (FLP).
An LLC is a type of corporate structure that protects each member of the company from being personally liable for any debts or liabilities that the company has. Our Folsom CA living trust lawyer shares that LLCs are basically a combination of the characteristics of a sole proprietorship or partnership with those of a corporation.
With an FLP, family members pool their money together in order to set up and operate a business. Each member purchases shares of the business and any profit they make is based on the number of shares they own as outlined in the partnership operating agreement developed upon the formation of the FLP.
A Folsom CA living trust lawyer wants you to know that LLCs and FLPs are required to be publicly registered, which can hinder a client’s financial privacy. However, an irrevocable trust is not required to be publicly registered. There is also more control over how each asset should be handled because there can be different terms for each asset, including the family home, real estate, business property, savings, life insurance policies, and other assets.
Let a Folsom CA Living Trust Lawyer Assist You
If you would like to learn more about the different legal options you may have to protect your assets and set up the most appropriate entities moving forward to secure your future, contact Yee Law Group today. Contact us today to set up a free consultation with one of our Folsom CA living trust lawyers at Yee Law Group, PC we can evaluate your situation and offer guidance as to what your best legal options are.