Living Trusts
What is a Living Trust?
A “living trust” (also called an “inter vivos” trust) is a trust you create and administer while you’re alive, rather than one that takes effect at your death. A Living Trust is an arrangement under which one person, called a trustee, holds legal title to property for another person, called a beneficiary. You can be the trustee of your own living trust, keeping full control over all property held in trust.
While this may seem like a strange and unnecessary procedure, it is essential to receive the benefits of a trust. Because a trust takes property out of your name, instead holding it in the name of the trust, when you die this property will go straight to those you intend it to go to instead of having to be taken out of your name through probate. Thus, a trust has significant advantages over a will because you avoid the lengthy and expensive probate process, minimize estate taxes and maximize privacy.
Trust FAQ
Q: Is a Trust right for me?
A: In the right circumstances, revocable living trusts can provide for a smooth, quick transfer of assets at death without the hassles of “probate”, which is the court-supervised process of settling an estate. However, Living Trusts are also widely misunderstood and often aggressively marketed to the wrong people. Although Living Trusts have significant benefits, not everyone needs one. In certain circumstances, a Simple Will is all that’s needed. However, many people (especially retirees) are misled into believing they need to have a Living Trust and end up paying unnecessary fees to do so.
Q: What are the Benefits of a Living Trust?
A: The biggest advantage to making a living trust is that property left through the trust doesn’t have to go through probate court, which is a costly and court-supervised process of paying your debts and distributing your property to the people who inherit it. The average probate drags on for months or even years before the beneficiaries get anything. Moreover, probate attorneys’ fees can amount to over 5% of the estate.
Another significant benefit of a Living Trust is that it can minimize estate taxes by maximizing estate tax exemptions.
Further, a Living Trust can maintain the privacy of your wishes. A living trust, unlike a will, is not made public by the Probate process, which makes any will, and other private documents, such as inventories of the deceased person’s assets and debts, a matter of public record. The terms of a living trust, however, need not be made public.
Q: When is a Living Trust Necessary?
A: As a general rule, anyone who owns real property or has over $100,000 in combined assets should have a Living Trust. If you do not fall within these parameters, then you may only need a Simple Will. However, it’s best to consult with our office to determine your specific needs.
Q: What is Included in Our Trust Package?
A: When you retain our office to create a customized trust package for you, you will receive the following as part of your package:
- Customized Living Trust
- Certification of Trust
- Last Will and Testament
- General Power of Attorney
- Living Will (Healthcare Directives)
- Burial Instructions
- Misc. Transfer Documents/Instructions
Q: Do you service my location?
A: We service all of California, with offices in Sherman Oaks, Long Beach, Ontario, Lancaster and Los Angeles.
If it is not convenient to visit one of our offices, we can handle your entire case by phone and email! Please give our office a call for a free consultation.
Living Trusts Video
Trust Fees
Our fees are based on the amount of time we believe your Living Trust Package will require. Our fees are very competitive and can be determined after a 30-minute in-office or telephone appointment.
Why Wadhwani & Shanfeld for Trusts?
We understand that every client’s most important estate planning goal is to secure a future that provides for their loved ones. We work with you to develop the appropriate plan that fits your circumstances and goals. In addition to preparing your customized estate plan, we will educate you as to the significance of your plan, and what you and your loved ones should expect in the future.
In addition to helping you avoid the hassle of probate, we also make sure that estate taxes are minimized or eliminated. Many individuals do not believe their assets total more than the allowed estate tax exemption and therefore do not feel estate planning is for them (at least not yet). Little do they know they are potentially making the IRS one of their largest beneficiaries without a proper estate plan in place. When taking into account today’s real property values, retirement accounts, life insurance benefits, and other liquid assets, many individuals’ assets fall outside the allowed exemption. Our planning strategies allow our clients to maximize their exemptions.
Our estate plan also addresses issues such as appointing a guardian for minor dependants, putting your wishes in writing in the event of terminal injury/illness and putting your burial instructions in writing. These are all things none of us want to think about at the present time, but once completed, your estate plan will make you feel secure that you have addressed relevant issues that will affect you and your loved ones for many years to come.
Whether it is for you or a family member, please contact us for a free in-depth consultation. As a convenience to you, telephone consultations are also available.