Set up an irrevocable trust in California to protect your family’s future
One way to plan and safeguard your family’s future is to create an irrevocable living trust with the legal guidance of our credible Oceanside irrevocable trust attorneys at Century Trusts & Estate Planning, PC. Planning for the future is crucial if you know you will leave your loved ones behind. Although many people find estate planning stressful, it is necessary to get their estate in order and ensure their wishes are carried out.
If you are considering creating an irrevocable trust or need assistance managing an existing trust in Oceanside, California, schedule an initial consultation with our skilled California estate planning lawyers today. Our legal team will help you protect your assets and plan for the future.
Why Do I Need an Irrevocable Trust Attorney in California?
Creating an irrevocable living trust is a way of confirming your estate is managed according to your wishes. More importantly, this estate planning tool allows you to safeguard your loved ones when you are no longer around.
Setting up an irrevocable trust can be challenging, but with our trusted Oceanside irrevocable trust lawyer’s guidance, you can protect your estate assets and prepare for the future assuredly. At Century Trusts & Estate Planning, PC, we are committed to:
- Help you choose the right type of trust, fund and manage the trust and provide legal advice on estate and tax planning.
- Transfer your estate assets with no inconvenience and cost as possible under California law.
- Help people make necessary arrangements to protect their assets through wills, trusts, and other estate planning tools.
- Understand the pain points of estate planning and work tirelessly to address them.
- Work closely with you to understand your specific goals and objectives and provide you with customized legal solutions to achieve them.
- Provide our clients with the highest legal representation and experienced estate planning assistance in the San Diego area.
By preparing for the future with care, we can help you & your beneficiaries avoid potential problems. From choosing the right type of irrevocable trust to funding and managing the trust, we are here to help you every step of the way. Contact our law office today and schedule an initial consultation to get the process started and learn more about irrevocable trusts.
What is an Irrevocable Living Trust?
An irrevocable trust is a permanent trust, meaning it cannot be changed once created. In California, irrevocable trusts are commonly used for estate planning purposes to protect assets, minimize estate taxes, and provide care for loved ones. Before creating an irrevocable trust, our knowledgeable Oceanside irrevocable trust lawyer can ensure it is the right choice for your specific circumstances.
When discussing trusts, the term “living” means that the trust goes into effect during the grantor’s life. Therefore, an irrevocable living trust is a trust that goes into effect during the grantor’s life and cannot be revoked.
What are the Benefits of an Irrevocable Living Trust in California?
Creating an irrevocable trust is a serious decision. Even though you will give up control over the trust assets, you do have control over the rules that govern the trust, and you can determine the uses of the trust assets. A top-ranking irrevocable trust attorney in Oceanside, CA, can explain the benefits of setting up this trust in California.
Despite its inflexibility, an irrevocable trust offers certain benefits that make it an attractive option in some circumstances. This type of trust has the following advantages:
One of the advantages of an irrevocable trust is that it can protect assets from creditors or lawsuits. Even if you are subject to a judgment or court order, you cannot lose assets placed into an irrevocable trust. Even lenders cannot seize assets in this type of trust. Once assets are transferred into an irrevocable trust, they no longer belong to the grantor and are therefore protected from legal action against the grantor.
Depending on the type of trust and how it is structured, assets in the trust can be shielded from taxation, resulting in significant savings for the grantor and beneficiaries. An irrevocable trust can offer various tax benefits, including reducing estate, gift, and income taxes. If the estate is large enough to trigger the federal estate tax, you can reduce the estate’s size and avoid the tax by placing your assets in an irrevocable trust.
What are the Types of Irrevocable Trusts?
California law recognizes several types of irrevocable trusts. Choosing the appropriate trust depends on the grantor’s goals and objectives. Our Oceanside irrevocable trusts lawyer can help you determine the most suitable type for your situation. Here are some common types of irrevocable trusts that can help you secure your assets and reduce taxes:
Irrevocable Life Insurance Trust (ILIT)
An irrevocable life insurance trust (ILIT) is designed to hold life insurance policies. This trust type is one of the most commonly used estate planning tools because of the tax savings benefit. The trust owns the policy, and the premiums are paid by the grantor. Upon the grantor’s death, the policy’s death benefit is paid to the trust, which can then distribute the proceeds to the trust beneficiaries tax-free.
Special Needs Trust
Special needs trust is created for people with disabilities or access and functional needs. It helps provide individuals with financial support without disqualifying them from government benefits, such as Medicaid or Supplemental Security Income (SSI).
It allows a disabled person to maintain their eligibility for public assistance benefits, despite having assets that would otherwise make one ineligible to receive those benefits.
Qualified Person Residence Trust (QPRT)
A qualified personal residence trust (QPRT) is an irrevocable trust that allows its creator to remove a home from their estate to reduce the amount of gift tax incurred when transferring assets to a beneficiary. With a QPRT, you retain the right to live in the residential property for the trust term without paying rent. At the end of the term, your named beneficiary takes ownership of the property.
A spendthrift trust is a type of trust that limits your beneficiary’s access to assets. The funds are released incrementally instead of receiving their inheritance all at once. It serves as a protection mechanism against bad and wasteful spending habits and creditors.
Charitable Remainder Trust
A charitable remainder trust (CRT) is a tax-exempt irrevocable trust designed to reduce the taxable income of individuals. This charitable giving strategy generates income and can enable you to pursue your philanthropic goals while helping provide for living expenses.
The donor receives an immediate income tax charitable deduction when the CRT is funded based on the present value of the assets that will eventually go to the named charity.
A bypass trust is used by spouses to reduce estate taxes when the second spouse dies. You and your spouse will each have provisions in your wills directing personal assets, not community property, to be used to fund the trust. When the first spouse dies, the majority of their property goes into the trust.
The surviving spouse can use trust property, but they never own it. So when the surviving spouse dies, that property is not included in their estate.
Call Our Competent Oceanside Irrevocable Trust Attorney Now!
An irrevocable trust is an important estate planning tool that can benefit individuals and families in Oceanside and the San Diego area. However, creating and managing an irrevocable trust can be complex. It is essential to have experienced legal counsel to guide you through the process.
Do not let the complexity of managing an irrevocable trust prevent you from protecting your assets and planning for the future. At Century Trusts & Estate Planning, PC, our experienced Oceanside irrevocable trust lawyers are committed to providing the guidance and support you need throughout the process.
Our estate planning law firm has years of extensive experience in estate planning, and we are committed to helping you create and manage irrevocable trusts that meet your unique needs. We are devoted to providing our clients with the highest legal representation and look forward to helping you achieve your estate planning goals. Contact us today to schedule a consultation with one of our skilled California estate planning attorneys.