From an Estate Planning In Temecula
Contrary to popular belief, the requirement for a living trust is not tied directly to your level of wealth, although upscale people usually are more inclined to establish a trust, or various trusts, for a variety of reasons. The requirement to develop trust is more generational, based upon the basic fact that life has only gotten more complicated. Make sure to consult with a highly qualified trust attorney, someone like “Temecula Estate Planning Law“ to help you get started.
So here are seven non-tax reasons to establish a trust
according to a Temecula Estate Planning Attorney:
1. Avoiding probate procedures so that your successors can quickly transfer properties of a decedent with privacy and at a reduced cost.
2. Safeguarding beneficiaries from depleting their inheritance by staggering distributions over many years or upon the accomplishment of specific turning points, such as finishing from college.
3. Offering disabled recipients, and beneficiaries with drug abuse problems. A trust can permit a disabled recipient to keep their eligibility for government advantages and can prevent a recipient with substance abuse issues from using their inheritance to sustain their dependency.
4. Control how your possessions will be given through younger generations by ensuring your estate is passed down through your bloodline and not to your in-laws or surviving partner’s brand-new partner.
5. Lender protection for your heirs from their creditors, or ex-spouses in the event of a divorce.
6. Consolidation of assets throughout your lifetime, which allows for effective management in case of a special needs and upon your death.
7. Planning for a blended household, when you remain in a 2nd marriage and have your kids, step-children, and perhaps, our A trust can ensure that your spouse and that all of your kids will be taken care of after your death.
Be rest assured recording a living Trust is fundamental to proper estate planning
Many people fear they will lose control of their possessions by developing a trust. This is just not the case, as most trusts do not include utilizing a bank or trust company as a trustee. The majority of customers who produce a trust function as their own trustee during their lifetimes and will name a child or other relative as their successor trustee.
Eventually, estate planning and establishing a trust is about keeping control, so that your assets pass to whom you want, when you desire, at the least expense, and in the most effective manner.