Trust Attorney Carlsbad
Trusts are legal entities that a person sets up to manage assets, and they involve three parties: the settlor – also known as grantor – who puts his or her assets into the trust; the trustee, who manages the trust assets; and the beneficiary, who receives the benefits of the trust.
A trust can help you protect your children’s inheritance from a divorcing spouse, provide for your minor children in the event of untimely death, and provide care for a family member who has special needs. It can even help you give to charity.
When a trust is in place, you avoid:
- Probate court
- Estate taxes (or at least minimize them)
- Court conservatorship
If you would like to establish a trust, read through the options that our team can assist you in setting up. Then, give us a call at 858-951-1526 or contact us online to get started.
Types of Trusts We Can Help You Set Up
The following section details the different types of trusts our skilled team can help you set up. We suggest reading through each option carefully in order to gain a better idea of which would work best for you. Then, schedule an appointment with a member of our team so we can review your situation and determine how to move forward in establishing the best trust for your needs.
- Revocable Trust/Revocable Living Trust: A revocable trust is also referred to as a revocable living trust, or just a living trust. It is the primary estate planning document in any effective estate plan. It clearly defines your wishes regarding your assets, dependents and heirs. You identify a trustee, which is similar to an executor of a will, to act on your behalf in the event that become unable to handle your own legal affairs or pass away. Revocable trusts can be changed at any time.
- Irrevocable Trust: This type of ironclad trust cannot be changed except in isolated circumstances. Those who seek this type of trust sometimes work in professions that leave them vulnerable to lawsuits, so they enter into irrevocable trusts to protect their assets. This type of trust is used to minimize estate taxes.
- Asset Protection Trust: This trust provides a way for funds to be held on a discretionary basis. It is created to protect the assets of high-net-worth individuals in the event of lawsuits, bankruptcy, divorce or other similar financially damaging situations, while enabling the individuals to continue to benefit personally from the assets. This type of trust can protect a home and savings from dwindling as a result of covering the costs of long-term nursing home care.
- Constructive Trust: This trust makes it possible to transfer property ownership, either during life or following death. It typically occurs when a court declares that beneficial ownership of property be transferred from the defendant to the plaintiff.
- Special Needs Trust: A special needs trust is designed to provide for the immediate and future benefit of disabled persons. This trust addresses the unique circumstances that a family must face when they need to plan for the long-term care of a family member with special needs.
- Spendthrift Trust: Do you want to leave assets to a loved one who is terrible with money? This type of irrevocable trust enables you to appoint an independent trustee who has full authority to determine how the trust’s funds will be expended for the beneficiary’s benefit. This trust protects the assets from the beneficiary’s creditors.
- Tax Bypass Trust: Also called a family trust or a credit shelter trust, bypass trusts make it possible for you to leave property to someone, and to protect that property from estate taxes when that person dies.
- Charitable Trust: This trust makes it possible for you to set aside assets for one or more charities. There are two types of charitable trusts: remainder trusts and lead trusts. A remainder trust signs over assets to a charitable organization for a specified timeframe. A lead trust enables the donor to retain control, and any interest that comes from the trust’s assets can go to the charity or be split between the charity and the donor’s beneficiaries. When the trust expires, it reverts back to a party of the donor’s choosing, typically an heir or other beneficiary.
GYL can help you establish the right trust for your needs. Contact us online or call us at 858-951-1526.