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What is a Living Trust?


A living trust is an entity (much like a business) that holds title to
your assets. You still retain complete control of your assets and may treat anything you own just as you did before creating your trust, however, now you own each asset as “trustee” of your Living Trust. With all of your assets owned by your trust, at death or incapacity, these assets are not subject to a probate proceeding. (Probate Information). WHY? Because your entity, YOUR LIVING TRUST, holds title to your assets...this allows you to transfer and/or manage your assets during life and upon death, through your living trust without court interference.

Without proper estate planning, including a living trust, the court will “step-in” during incapacity or at death to manage your financial affairs. When the court is in control, no one is legally able to manage your assets, not even your spouse, unless the court appoints them. If you execute the proper estate planning documents, you identify who has legal authority to act on your behalf - taking this decision out of government hands. In addition to this loss of control, a Probate Court Proceeding can cost thousands of dollars more than the cost to privately execute a proper estate plan (Probate Cost Chart).


What Benefits Do Living Trusts Offer?

A properly executed and funded trust, will save you and your beneficiaries thousands of dollars and offers many important benefits, including:

  • Retention and Privacy of Family Assets and Finances

  • Capital Gain Tax Savings

  • Death Tax Avoidance or Reduction

  • Probate Avoidance

  • Avoidance of a Court Imposed Conservatorship (if you are incapacitated)

  • Avoidance of Joint Ownership Problems

  • Control of Distribution and Management of Assets During Life and After Death

  • Estate Tax Avoidance or Reduction

  • Protects Minor Children from Court-Imposed Guardianships

  • Protects Dependents with Special Needs

  • Living Trusts are Inexpensive, Easy to Set Up and Maintain

  • Many other benefits of Living Trusts exist depending on the unique characteristics of your situation


How is a Trust “Funded”?

Many Estate Planning Attorneys simply draft the necessary legal documents that make up an estate plan, but, do not “fund” these living trusts. This complicated task is frequently left for the client to complete.

Funding is a process where title to each asset is transferred from the name of an individual(s) into the name of that person as “trustee” of their Living Trust. This process transfers the assets to the entity, the Living Trust, and the trust is then “funded” with their assets.

Our attorneys have knowledge and experience funding living trusts. Our office initiates the “funding” process by sending out “funding letters” to the respective financial institutions necessary to transfer your assets and fund your living trust. At The Law Offices of Sydney C. Kirkland, we work with you and your professional advisors to create Your Estate Plan AND generate the necessary documents to evidence your choices, inform others of your choices and to enforce those choices, when necessary.


What Make us Unique - and the Right Choice to do your Trust

When setting up a trust, there is no substitute for experience and thoroughness. Here's what we do to ensure that you have a completely executed trust that is valid for many years to come:

  • We have an easy to reach office in Downtown Escondido in the Grand Professional Building with easy access to I-15 and CA-78

  • We specialize in and focus on estate planning and all associated legal areas - it's the only type of law we practice

  • We meet with you face-to-face and discuss in detail your estate needs (ie; we aren't a trust mill or a faceless website that does trusts via email)

  • As mentioned above, we ensure that your trust is funded as part of our service. That means that we draft and deliver the necessary documents to the county recorder, DMV, banks, savings & loans, etc to place your assets in the trust. Others may leave this task to you to finish. Avoid the costly tragedy of your loved ones discovereing an unfunded trust years later when it's too late to correct the oversight.

  • We keep paper and digital copies of your trust on file until 5 years after the administration of your trust. That provides you with peace of mind; knowing that if you were to lose your copy of your trust, we have backup copies on file.

  • We are experienced at handling complex trusts with high value assets such as businesses & partnerships, classic cars, yachts, airplanes, art collections, real property, apartments, vineyards, etc.


A Will is Administered Through the Probate Court...What About Living Trusts? How are They Administered? (Trust Administration)


A Living Trust is privately administered by the trustee, preferably with the
help of an attorney experienced in trust and estate administration. Administration involves paying any creditors and distributing assets held in trust. Any property/assets where title is held by a living trust goes directly to the beneficiaries, once the trustee completes his or her trust administration responsibilities. The costs to administer a living trust are approximately 1-2% of the estate. This is extremely less expensive than the costs to administer an estate through probate, which costs 4-10% of the estate (where there is no living trust).


For more information and answers to questions about living trusts, please go to the resource:
(Frequently Asked Questions About Living Trusts)

As life changes, so do your choices. This is why Estate Plan Reviews and Estate Plan Updates are just as important, as creating an Estate Plan, for you and your family. (Estate Planning Quiz)
 



 

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Law Offices of Sydney C. Kirkland
220 W. Grand Avenue
Escondido, California 92025
Phone: (760) 746-1855
Fax: (760) 888-8431
info@sandiegoestateplanners.com

Contact us today for a free consutation regarding your estate planning needs.

 

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