Trust Attorneys in San Luis Obispo, CA

The probate procedure does not apply to trusts since they are not part of a person’s estate. However, managing trust may be both difficult and time-consuming. Many of our attorneys have experience in estate planning, which includes establishing trusts. Our knowledge of trust administration (trustees’ obligations after the grantor’s death) allows us to assist them. In some trusts, assets are distributed immediately, while in others the monies are distributed over a period of time or at certain milestones, such as getting married or graduating from college. As soon as all assets have been spent, we will help in the management of investments, payouts, and winding down the trust.

What is a Trust?

In a trust, a third person, called a trustee, holds and manages assets on behalf of a designated beneficiary. When it comes to managing your assets, a trust dramatically widens your choices, whether you’re attempting to shelter your fortune from taxation or pass it on to your children..

A picture that comes to mind when you hear the terms trust or trust fund is a rich family in their home, passing down their fortune from generation to generation. The Rockefeller or Gates families are not required to set up and profit from a trust.

Estate Administration in California

When it comes to estate planning, our attorneys are well-versed in a wide range of options, all of which are in compliance with California and federal regulations.

Revocable Trust

A typical kind of trust is a revocable trust. A living trust, sometimes known as a revocable trust, is a legal document designed to manage your assets while you are still alive. Bypassing probate is an advantage of this instrument, as with all others. The trustee may cancel or change the trust at any time.

A trust for the benefit of someone with special needs.

If you have a special needs child or grandchild, you may want to consider setting up a special needs trust. People with special needs who have set up a special needs trust stand to gain a variety of advantages, including the preservation of public benefits, the provision of lifelong financial support and medical care, the creation and maintenance of a network of advocates to protect their rights, the establishment of a comfortable home environment, the facilitation of locating suitable employment, as well as the creation of social and recreational opportunities.

Intentionally Defective Grantor Irrevocable Trust (IDGIT)

Using a deliberately flawed grantor irrevocable trust, a person may freeze certain assets while passing on the market’s growth to the beneficiaries without paying any gift or estate taxes on it. Setting up an IDGIT for the benefit of your selected heirs and then selling an appreciated growing asset to the IDGIT for a note representing the value of the asset are two ways to achieve this goal free of capital gains tax. The assets you sell to the IDGIT will not be subject to capital gains taxes, and you will not be taxed on the IDGIT’s note to you or on the value produced within the IDGIT as a result of the transaction.

Grantor Retained Annuity Trust (GRAT)

In a grantor-retained annuity trust, a donor contributes money to the trust, which is set up as an annuity and receives a monthly payment from the trust. The remaining value is transferred to beneficiaries after donors receive yearly payments for a defined length of time. To avoid the gift tax, a donor might transfer assets to a trust at the original tax rate at which they were contributed, which could be zero. However, if the grantor (i.e., the person who made the gift and is receiving the yearly payments for the set duration) dies before the predetermined time, there is a disadvantage. The prospective tax advantage will not be achieved in this instance.

Qualified Personal Residence Trust (QPRT)

The value of a house may be removed from an individual’s taxable estate by using a qualified personal residence trust. It’s possible to do this by transferring title to a QPRT and keeping the right to reside there for a certain period of time. It would be the grantor’s responsibility to cover the expenses of property taxes, upkeep, and repairs throughout this period. Grantors may continue to reside in their homes for as long as they choose beyond a set length of time, provided they agree to pay rent to their beneficiaries. For example, the gift of the home is not taxed at its market value but at its actuarial value, which is assessed using formulas issued by the Internal Revenue Service.

Pour-Over Will

In the event of a trust, you still need a pour-over will. There may be additional assets obtained after the decedent’s death and before the trust is established, even if one has already been established. Using a pour-over, you may ensure that all of your assets will be transferred to the trust upon your death.

Legal Counsel for the Administration of Estates

When a loved one’s estate is settled or trust is administered, it may be a harrowing experience. There is a lengthy to-do list and a plethora of guidelines. In which direction do you begin?

Estate law attorneys at 805 Law Group help executors, and administrators carry out their responsibilities as effectively as possible while still adhering to the requirements of California probate law. We assist you in organizing and understanding your duties, and we are available to lend a hand when complications arise.