Trusts are an important part of estate management. Trusts can go a long way in avoiding probate. Probate is a process by which the last will of the deceased is authenticated. The process is both expensive and time consuming. If you have a trust then the funds will pass to your heirs automatically without having to go through the probate process. It will help to keep the financial matters of your family private and secure. LA probate Law experts say that the time taken to transfer the money from a trust to the intended beneficiaries is also lesser than the time taken for a probate process. One of the basic forms of trusts is an Inter Vivos trust which is formed during the lifetime of a person. Inter Vivos trusts are generally created to save tax. People also name it as a living trust. Many lawyers will advise you to form these trusts as a part of the estate planning. The term period of the trust can be decided during the formation of the trust. With the help of this kind of a trust, the owner can distribute his assets during his lifetime or even after his death.
If you want your family to be financially secure even after your death then a testamentary Trust can be of great help. Alternatively, it is also called as the Will of Trust as the trust is mentioned in the will of the deceased individual. This trust comes into effect only after the death of the testator. The will of the grantor has to be probated for the trust to become noteworthy. A trust involves at least three parties. The first party is the settlor or the trustor who creates the trust. He has the right to name the beneficiary of the trust. He can also name the trustee. The trustee is the person who carries out the terms of the trust. If the settlor has not mentioned the name of any trustee in particular, then the probate court can appoint a trustee on his behalf. The trustee performs his duties only till a certain specified time. This time can be set by the settlor or by the court. Generally if the beneficiaries are minors, the trustees have a role till the children reach 18 years of age or reach marital status. The beneficiary is the person who is entitled to receive the benefits. All the three parties are indirectly related to the probate court. The court has the responsibility of supervising all the activities of the trust and its parties. It also keeps a keen eye on the functions of the trustee. You can gather more information about testamentary trusts if you go through LA Probate Law. The funds of the trust come from the earnings and savings of the settlor. Many a times, the funds are created due to the death of the settler such as from insurance claims or settling of a wrongful death suit. If your funds are in the trust, then you can be rest assured that no one can mishandle your money. Skilled lawyers generally advise settlers to create a letter of wishes for the trustees. This letter of wishes is a non-binding indication of the actions of the trustee. Though these letters are not legal enforcements, but they contain guidelines as to the powers and rights of the trustee.
Supplemental Needs Trusts can be formed during the lifetime of an individual or even after the death of the concerned individual. These trusts are created to take care of disabled children, spouse or relatives. The trust can provide for people outside the family if it is so desired by the owner of the trust. Beneficiaries can avail the assets for their needs except for those aids that are provided by public benefit programs of the state. The heirs of the trust will have access to Medi-Cal, Supplementary Security Income programs and low-income housing. If you still have any doubts about the eligibility and requirements of these trusts you can ask for the guidance of an LA Probate Law professional.
Credit Shelter trusts are created to evade taxes. It is also called family trusts. The owner transfers a specified sum of money so that it does not exceed the estate tax exemption amount. You can pass the rest of your estate to your spouse or children without paying any tax. One of the major advantages of these trusts is that the money continues to build up without accruing any tax. One who knows about LA Probate Law will also be aware of Generation Skipping Trust or Dynasty Trust. This trust can be generated typically for your grandchildren. You can pass a considerable share of your assets to your grandchildren without paying any tax. The gap should be at least two generations or more.
Another kind of trust which has gained popularity in the recent years is the Qualified Terminable Interest Property Trust. This trust is especially suitable for families which have been through a number of divorces and remarriages. One of the biggest problems in multiple divorces and remarriages is the division of assets among stepchildren. You can choose your beneficiaries specifically with this kind of a trust. After your death, your spouse will get a steady income from the funds of the trust. Once your spouse also dies, the chosen beneficiaries will be given the remaining amount in the trust. LA Probate Law experts will help you to establish a trust that will be both profitable and convenient to you.