We've spent quite a bit of time on this blog discussing various types of trusts. These estate planning vehicles can serve an important purpose. They can allow an individual to leave assets to others with certain restrictions applied. There are oftentimes tax advantages to utilizing a trust, too. In order to pick the trust types that are right for an individual in his or her situation, it is important to carefully consider the options.
One option available to Californians is the account in trust. Here, an account is placed in trust, meaning that it will be managed by a designated trustee for the benefit of another. As with other trusts, terms and restrictions may be placed on the trust and the dispersal of assets from the trust. A variety of assets can be placed in an account in trust. Stocks, bonds, mutual funds, even real estate can be placed in an account in trust.
Assets that are payable on death often utilize accounts in trusts. Here, the account essentially acts as a bank account that is legally transferred to a named beneficiary upon the account creator's death. One of the many benefits of this type of arrangement is that the account in trust can usually bypass probate, avoiding unnecessary and unwanted delays and costs.
Trusts can be an effective way to engage in estate planning. These vehicles can ensure that assets are protected for the benefit of loved ones, but it can also put an estate planner's mind at ease because he or she can put the restrictions in place that he or she deems are necessary to ensure the assets in the trust are protected and used only according to his or her wishes. To learn more about trusts and the benefits they can provide during the estate planning process, Californians can sit down with a legal professional who is experienced in this area of the law.