Trust Attorney Los Angeles, Woodland Hills, Encino, Tarzana, Chatsworth and the entire San Fernando Valley
What exactly is a living trust?
A trust is a legal instrument under which a person (also called the “trustee”) holds the title for the estate or property of another person, who is also called the beneficiary. However, this system does not always involve another person. You can hold the title of your property yourself till the time you are alive. During this term you will be in full charge of your property and assets.
So therefore, a living trust is the trust which you create when you are alive –unlike the many other forms of trusts which are created post your demise. The type of trusts can vary; but most people prefer the revocable kind – the ones which can be amended during your lifetime.
These different sorts of trusts help you get rid of probate, or reduce or eliminate estate taxes. It also goes a long way in your estate management as it can also help you to manage the assets and allocate it to the heir of your estate. In fact, all you need is one carefully drafted trust to manage all these kinds of taxes. I am an experienced Trust Attorney Los Angeles, Woodland Hills, Encino, Tarzana, Chatsworth and the entire San Fernando Valley. Having helped out many clients of these areas, you can always reach out to me to find out more about Living Trusts.
Why would I need a living trust?
One of the biggest advantages of making a living trust is that the property which you leave your beneficiary will not have to go through a probate court before it is handed down to them. This saves a lot of time and procedures for your heir to complete which can sometimes become a hassle.
A probate is the court hearing for distributing your wealth and estate among your successors. This takes about a year or two on an average to complete. By that time there’s less and less for them to receive because the lawyer’s fees could take up about 5-10% of the estate alone, and it is also a hassle for the kith and kin to go through it emotionally after the loss of a loved one.
Even then, not everyone has to worry about a probate and some people might not actually need a living trust at all. But still if you are the owner of a real estate this is perhaps the best option.
How does a living trust escape probate?
A living trust does not go through a probate, because after the death of the person, your trust successor will hand over the trust to the beneficiaries. This process can at the most take a few weeks. However, you do not have to pay any lawyer fees during this tenure.
Things to consider before getting a living trust
- Increased effort: There’s more effort and more paperwork related to living trust than any other trust.
- Higher costs: Costs are related not only to your Trust Attorney Los Angeles, Woodland Hills, Encino, Tarzana, Chatsworth and the entire San Fernando Valley, but also for each grantor who will receive it.
- Limited taxes: It puts a bar on the limit of taking out taxes after the grantor’s death; so it involves a lot more hurdles post the death of the trustee than it is before.