Types of Trusts Handled By A Trust Lawyer
The help that a trust lawyer Sacramento, CA community members choose can be invaluable when planning your estate. It is common for people to have preconceived notions about trusts. For example, many people believe trusts are only for wealthy people who plan to leave large sums of money to their children or grandchildren. This is far from the truth. In fact a trust can be one of the most valuable tools for an individual who holds any amount of financial assets or property. A trust lawyer in Sacramento, CA from Yee Law Group can review your situation and provide guidance about planning your estate.
What is a Trust?
A trust is a type of legal arrangement in which one party holds and manages assets on behalf of another party. These assets can include financial wealth, property, and physical objects. You can create a trust with the help of a Sacramento trust lawyer. This person will authorize another individual, known as a trustee, to oversee and manage your estate on behalf of your beneficiaries. The benefits of establishing a trust include:
You can save on taxesYou may avoid probateYou can preserve disability benefitsSuccession can be avoidedInformation can be kept confidentialAssets can be managed and protectedThe distribution of assets can be controlled
To learn more about the benefits of a trust, call Yee Law Group to speak with a trust lawyer Sacramento, CA locals recommend.
The following are the most common types of trust. For an in depth explanation of these various trusts and their benefits, call Yee Law Group to learn more from a trust lawyer Sacramento, CA residents turn to for guidance.
Trusts for Minors
This is typically created for children or grandchildren who are under the age of 18 years. Often the money is meant to ensure the children get access to education, healthcare, and other support. Once the children turn a certain age (not necessarily 18) or achievement level (i.e graduate from college) they might be able to receive funds from the trust.
Special Needs Trusts
This kind of trust allows you to leave property to a person who has special needs. This trust may also protect your beneficiaries’ government benefits while ensuring they have extra money to secure the necessities in their life.
Sometimes a married couple will include a trust in their will for two reasons: the first being taxes and the second being the protection of property. Marital trusts can ensure any assets goes to the right person; for example if a wife has children from a previous marriage, she might choose her husband to use her property following her death. However, after he passes, the property will go to her children.
Revocable Living Trusts
These legal documents are separate from a will, but work together with a will. In general a revocable living trust is mainly used to avoid probate. It might also be used when you have property in multiple states or countries.
Irrevocable Life Insurance Trusts
These can be used to move life insurance proceeds outside of an estate. The reason for this trust is primarily for tax purposes. Talk to a trust lawyer Sacramento, CA families trust from Yee Law Group.
These are most commonly used to protect your assets from creditors. Spendthrift trusts can be complex and further explained by a trust lawyer.
Questions To Ask Prospective Trust Attorneys
What Is Your Legal and Trust Experience?
Your first question for each trust lawyer in Sacramento, CA is how long they have been practicing law. Then, you should ask how long they have practiced estate planning and trust law. You can verify these answers through your state bar website. You want someone with extensive experience who also stays up to date on new regulations. Many of these attorneys have also served as executors, trustees or private fiduciaries. Therefore, you should also ask about any specialized training, knowledge or certifications.
Next, you should ask how much of the attorney and firm’s cases involving estate planning and trusts. You may ask why the attorneys chose to practice estate planning law, but be sure that this type of law is a significant portion of their practice.
How Do You Suggest I Handle My Estate?
Established law firms, such as the Yee Law Group, can review your assets and liabilities and give you suggestions on how your estate should be structured. If you are looking for a lawyer who specializes in trusts, choose attorneys who suggest that you start a trust. However, make sure you choose someone who has both short- and long-term strategies.
What Is Your Communication Process?
The attorneys at the Yee Law Group can tell you that your trust needs regular updating. This means that any time you purchase new assets, pay off debts or get new debts, you should update your trust. In addition, your attorney should contact you on a regular, possibly yearly, basis to ensure that everything is up to date.
Therefore, you need to understand your attorney’s communication process. Will you receive a yearly email or phone call? Will you be billed for each communication at an hourly rate, or are these calls included in your trust setup rate? Also, ask what method of communication the attorney prefers from you because you will need to contact the office periodically as well.
Will You Describe Your Typical Client?
You want your trust lawyer in Sacramento, CA to understand your needs. Those who were from different generations may not understand some of the alternative assets that are available today, while others may not be tech-savvy. Although the attorneys may be able to create the trust you want and provide your desired communication, if they don’t understand your needs, you may not be satisfied with their services. Your lawyer needs to completely understand you, your assets and your needs to represent and defend you effectively.
Do’s and Don’ts of Trusts
Do Set Up a Trust as Soon as It Makes Sense
According to CNN Money’s Ultimate Guide to Retirement, a good metric to follow is that if you have a net worth of $100,000 and own real estate, you might benefit from a trust. A trust can protect your assets from probate and ensure rapid delivery to the beneficiaries of your trust. It can also shield your assets from your beneficiaries’ creditors.
A trust may also make sense if you own unusual assets that you want taken care of, including vacation homes, recreational vehicles, mineral rights and pets. Business succession may also need to be handled through a trust.
A trust lawyer in Sacramento, CA such as Yee Law Group can help you determine whether a trust may be right for you.
Do Choose Your Trustee Carefully
Your trustee must be someone who’s good at handling money, at following your wishes when it comes to distribution of assets and at standing up to beneficiaries who may be upset about the trustee’s handling of the trust. Your trustee is a fiduciary, a person legally obligated to operate in the best interests of the trust’s beneficiaries. If you don’t have a person in your life you would trust to act in this capacity, you can designate a trust lawyer in Sacramento, CA to act as the trustee.
Don’t Go For Large One-time Payouts
Oftentimes, trusts are set up such that when their beneficiaries reach a certain age, often 18 or 21, they are given a large one-time payout. Another common setup is that the beneficiary will receive lump sum payments at age 25, 30, and 35. Young adults aren’t equipped to handle large sums of money at a time, and can easily squander their inheritance. A trust can be set up so that certain milestones must be met, or payouts come at later ages, perhaps 30, 35, and 40. A trust lawyer in Sacramento, CA can help you navigate these perils to your future estate.
3 Myths about Trusts
Trusts are intentionally a complicated form of legality. Regardless of what type of trust you need, whether it be a irrevocable living trust or a third-party special needs trust, your trust lawyer in Sacramento, CA at the Yee Law Group can help you understand more about how it operates and why it is useful in your circumstance.
That said, here are several myths about trusts that keep people from using them as a viable estate planning tool. Whether you are planning on creating a trust or looking into the matter for a loved one, these three debunked myths, as well as a thorough consultation with a trust attorney should help to demystify the direction you are willing to take.
1. You Don’t Need a Will If You Have a Trust
Many people mistakenly believe that if there is a trust, there is no need for a will. In fact, any trust lawyer in Sacramento, CA should help you create a new will, or even an amendment to an existing will, as they help you plan your trust. In most cases, the trust can only be carried out once your legal will is found to make this wish clear and formal.
2. Your Trustee Must be a Relative
If you are not comfortable with leaving your trust in the hands of a close family member, you should not let this stop you and your designated loved ones from reaping the benefits of a well-settled trust.
Anyone can be a fiduciary. This means that anyone can step up to act on your behalf in the best interest of yourself and your loved ones. Your trust lawyer in Sacramento, CA can help you find a trustworthy fiduciary, or you can locate one yourself. Even a bank or a lawyer can be the administrator of a trust if this is what you feel most comfortable with.
3. Your Trust Will Trigger Probate
You may be worried that all of your assets will trigger probate and will have to be counted through the court once you pass away, even if you have a trust. As your trust lawyer in Sacramento, CA will tell you, the state of California does not admit any assets into probate if they are designated in a living or special needs trust. Any assets, from bank accounts to cars to real estate, are safe from probate when they are named in a trust recognized under California law.
In fact, many people use trusts as an estate planning tool to help avoid probate. If you choose to do so as well, your attorney at Yee Law Group may help you to safeguard any valuable assets into a trust in order to speed up the inheritance process for your loved ones. Avoiding probate saves your family a lot of money and time, and it exempts them from paying taxes on your belongings.
Don’t Try To Set Up a Trust By Yourself
There are many kinds of trusts you could set up, and all of them have the potential to become extremely complicated. Without a working knowledge of laws regarding trusts, taxes, and estate planning, you could easily make mistakes that would increase the tax burden and lower the inheritance of your beneficiaries. A trust lawyer in Sacramento, CA such as Yee Law Group can steer you in the best direction for your trust planning needs.
A Trust Can Save You and Your Beneficiaries Money, Call Yee Law Group to Learn More
When you compare the costs of probate, court fees, or other expenses that could be incurred upon your death or incapacitation, the cost of a trust might be far more reasonable. If you would like to know how a trust can help you, call a trust lawyer Sacramento, CA offers from Yee Law Group at 916-927-9001.
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