Creating an estate plan to ensure your assets are distributed according to your wishes after you pass involves making a number of decisions. During this process, you must consider whether you are willing to yield control or use of your assets just yet.
You don’t have to give these up. When you create a living trust, if properly drafted, you can maintain control over your assets during your lifetime while also making provisions regarding how they may be used or distributed in the future.
If you are considering making a living trust, start by contacting an attorney who specializes in these matters. At the Law Offices of Andrew Cohen, our Encino living trusts attorney will help you more thoroughly understand your options, ensuring the decisions you make in regard to this issue are best suited to your wishes.
When you establish a revocable living trust, you can serve as the trustee. This means you will still have control over the assets that have been placed into the trust.
As the name implies, a revocable living trust can be revoked or adjusted at any time while you are alive. The assets within the trust will transfer to your beneficiaries upon your death. If this does not occur, they may continue to be held in the trust on behalf of said beneficiaries.
Revocable living trusts tend to be the most popular types of living trusts. Those setting up living trusts typically appreciate having the option of managing them directly while they are alive and making changes when they see fit.
Although revocable living trusts may be more common, there are valid reasons why some people choose to set up irrevocable trusts. A person who sets up an irrevocable trust will typically do so because they wish to give away certain assets while they are alive in return for achieving certain benefits allowed by the law in these circumstances.
Giving away your assets in an irrevocable living trust is not a decision which can be easily reversed. This is a primary difference between a revocable living trust and an irrevocable trust. When you set up an irrevocable trust, you have essentially given up the right to make any changes to the trust.
This type of trust does offer key benefits. Assets that have been transferred to an irrevocable living trust may no longer qualify as assets within your estate. This means they will be unaffected by estate taxes.
Setting up a living trust can be a complex process. First, you need to determine which type of living trust you should establish based on your goals. You must then determine which assets you will transfer to your living trust.
Don’t let this task intimidate you. At the Law Offices of Andrew Cohen, an Encino living trusts attorney will guide you through every step of the process, discussing your goals thoroughly to ensure we develop a plan that’s ideal for your purposes. Get started today by contacting us online or calling our offices at 661-481-0100.