{"id":1604,"date":"2023-01-14T00:07:09","date_gmt":"2023-01-14T08:07:09","guid":{"rendered":"https:\/\/pallareslawfirm.com\/?p=1604"},"modified":"2023-01-15T11:27:25","modified_gmt":"2023-01-15T19:27:25","slug":"living-trust","status":"publish","type":"post","link":"https:\/\/pallareslawfirm.com\/living-trust\/","title":{"rendered":"Living Trust"},"content":{"rendered":"\t\t
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A living trust is a legal document that allows you to transfer ownership of your assets to a trust while you are still alive. The assets in the trust are then managed by a trustee for the benefit of the beneficiaries you have designated in the trust document.<\/p>\n

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Advantages of a Living Trust<\/span><\/p>\n

Avoids probate:<\/span>
A living trust allows for the transfer of assets outside of probate court, which can be a time-consuming and expensive process.<\/span><\/div>\n
Incapacitation planning:<\/span>
A living trust can provide for a seamless transfer of assets in the event of incapacitation.<\/span><\/div>\n
Privacy and control:
<\/span>A living trust is not a public record when it is filed, so the terms of the trust and the assets it contains are not available for public inspection.<\/span><\/div>\n
Flexibility:
<\/span> A living trust is a flexible document that can be amended or revoked as long as the grantor has capacity to do so.<\/span><\/div>\n
Protection from creditors:<\/span>
In some cases, a living trust may provide some protection from creditors depending on the type of trust and the laws in your state.<\/span><\/div>\n
Continuity:<\/span>
A living trust can provide continuity in the management of your assets if you become incapacitated or pass away, without the need for court involvement.<\/span><\/div>\n
Avoiding contests:<\/span>
A well-drafted trust document can be written in such a way to deter family members or other parties from challenging the distribution of assets.<\/span><\/div>\n
Asset Protection:
<\/span> A living trust can protect assets from creditors, lawsuits, and other legal proceedings, providing an extra layer of protection for your assets.<\/span><\/div>\n

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How to Set Up a Living Trust<\/span><\/p>\n

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Consult with an attorney:
<\/span> It’s important to consult with a qualified attorney or financial advisor before making a decision.<\/span><\/div>\n
Fund the trust:<\/span>
This means transferring ownership of your assets into the trust by changing the title or deed of your property, re-titling bank and investment accounts, and updating beneficiaries on retirement accounts and insurance policies to the trust.<\/span><\/div>\n<\/div>\n

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The Law Office of Juan Carlos Pallares is available if you decide that you would like to hire an attorney to make sure the process is completed legally. We look forward to your call.<\/span><\/p>\n

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FAQs<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tWill a living trust protect my assets from creditors?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t
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In some cases, a living trust may provide some protection from creditors, but it depends on the type of trust and the laws in your state. It’s best to consult with an attorney to understand how a living trust might protect your assets in your specific situation.<\/span><\/div>\n<\/div>\n
\u00a0<\/div><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tCan I add assets to my living trust after it's been created? <\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

Yes, you can add assets to your living trust at any time by retitling the assets in the name of the trust. This process is known as “funding the trust” and is an important step in making a living trust effective.<\/p>\n

If your situation is more serious, it’s important that you talk to an attorney right away about what options are available for someone in this position. Schedule a free initial consultation with us now!<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tWill a living trust avoid probate for all of my assets?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

A living trust will avoid probate for assets that have been properly transferred into the trust. However, not all assets can be placed into a trust and therefore may still go through probate. For example, assets such as life insurance policies, which name a specific beneficiary, will pass outside of the trust to the named beneficiary and probate will be avoided.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tCan I name myself as a beneficiary of my living trust?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

Yes, you can name yourself as a beneficiary of your living trust. This is known as a “self-settled trust” or “grantor trust” and you will have control over the assets in the trust and use them for your benefit during your lifetime.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tWhat happens to the assets in a living trust after I die? <\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

After you pass away, the assets in your living trust will be distributed to the beneficiaries you have designated in the trust document. This process is known as “trust administration” and is typically done without the need for court supervision.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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The cost of setting up a living trust can vary depending on factors such as the complexity of your assets and the laws in your state. It’s best to consult with an attorney<\/a> to get an estimate of the costs involved in creating a living trust.<\/p>\n

Call (562) 742-5194 to schedule a meeting today!<\/p>\n

Book appointment<\/strong> <\/a>online<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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While a living trust can be a useful estate planning tool, you may still need a will even if you have one. A will, also known as a “last will and testament,” is a legal document that allows you to specify how your assets will be distributed after you die. Even if you have transferred most of your assets into a living trust, there may still be some assets that have not been transferred and would therefore be subject to probate. A will allows you to provide for the distribution of those assets that are not covered by the trust.<\/span><\/div>\n<\/div>\n
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A will can also be used to name a guardian for any minor children, and also can be used to leave specific gifts.<\/span><\/div>\n<\/div>\n
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Additionally, In the event that the living trust is not funded or you forget to transfer some assets into the trust, a will can serve as a “safety net” to ensure that those assets are distributed according to your wishes.<\/span><\/div>\n<\/div>\n
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In summary, while a living trust can be an effective way to manage your assets and avoid probate, it may not cover all of your assets or addresses certain situation, therefore a will can complement it by providing a mechanism to distribute those assets that are not in the trust and also addressing other important matters such as guardianship and specific gifts.<\/span><\/div>\n<\/div>\n

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The amount of property that is exempt from estate tax can vary depending on the laws in your country, state or territory.<\/span><\/div>\n<\/div>\n
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In the United States, there is a federal estate tax that applies to the transfer of assets at death, and as of 2021, the federal estate tax exemption is $11.7 million per individual. This means that for an individual, estates valued at or below that amount are not subject to the federal estate tax. For a married couple the combined exemption is $23.4 million, meaning the first $23.4 million is tax free, and anything above that amount is subject to estate taxes.<\/span><\/div>\n<\/div>\n
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However, some states have their own estate tax or inheritance tax, with exemption levels that may be lower than the federal level. It’s important to note that these laws change over time and it’s always good to check the laws and regulations in your area.<\/span><\/div>\n
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It is also important to note that the exemption amount is subject to annual inflation adjustments, therefore this number could change on a year to year basis.<\/span><\/div>\n<\/div>\n
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It is also worth mentioning that certain types of property or assets may not be subject to estate tax, even if the total value of your estate exceeds the exemption amount. Some examples may include charitable donations, qualified retirement plans and certain types of trusts, such as the Bypass or A-B trust .<\/span><\/div>\n<\/div>\n
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It is recommend to consult with an attorney or tax professional to understand the specific estate tax implications in your situation, and to ensure that your estate plan takes these laws and regulations into account.<\/span><\/div>\n<\/div><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tCan I name myself as a beneficiary of my living trust? <\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

Yes, you can name yourself as a beneficiary of your living trust. This is known as a “self-settled trust” or “grantor trust” and you will have control over the assets in the trust and use them for your benefit during your lifetime.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Living Trusts: Understanding the Benefits<\/p>\n","protected":false},"author":1,"featured_media":3692,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[13],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/pallareslawfirm.com\/wp-json\/wp\/v2\/posts\/1604"}],"collection":[{"href":"https:\/\/pallareslawfirm.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pallareslawfirm.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pallareslawfirm.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pallareslawfirm.com\/wp-json\/wp\/v2\/comments?post=1604"}],"version-history":[{"count":5,"href":"https:\/\/pallareslawfirm.com\/wp-json\/wp\/v2\/posts\/1604\/revisions"}],"predecessor-version":[{"id":3765,"href":"https:\/\/pallareslawfirm.com\/wp-json\/wp\/v2\/posts\/1604\/revisions\/3765"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pallareslawfirm.com\/wp-json\/wp\/v2\/media\/3692"}],"wp:attachment":[{"href":"https:\/\/pallareslawfirm.com\/wp-json\/wp\/v2\/media?parent=1604"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pallareslawfirm.com\/wp-json\/wp\/v2\/categories?post=1604"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pallareslawfirm.com\/wp-json\/wp\/v2\/tags?post=1604"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}