Establishing The Right Trust For You
Once your lawyer and, if you have one, your accountant or financial planner have evaluated your situation and agreed that establishing a trust (revocable/living trust, irrevocable trust or A-B trust) is an appropriate way to protect your estate, there are two important steps remaining. Your attorney will draft the trust documents and assist the transfer of assets into the trust (a process referred to as “funding the trust”).
When drafting a trust, I never rely on boilerplate text. I find that many trusts are unnecessarily wordy and often confusing. Also, often the creators of such documents do not properly understand the distinction between wills and trusts. That practice has two dangers. People sign documents they do not understand, and the documents do not address their specific situations. When I establish a trust, I use clear, simple language and make sure that my client understands and agrees with the terms.
Creating A Trust That Meets Your Unique Situation
Funding a trust involves creating and registering new deeds for homes, business properties, timeshares and other property to be transferred into the trust. If property is transferred between parents and children, the parent-child exclusion form must be completed and filed. The trust may also need to be named in beneficiary designations on insurance policies and retirement accounts. From my offices in Sacramento, I handle transfer of properties in California, neighboring states and Canada on behalf of my clients.
At Michael A. Sawamura, Attorney at Law, in Sacramento, I handle all aspects of estate planning and establishing trusts. I also handle specifics concerning trust administration. As your lawyer, I will help you determine what instruments will help you meet your goals, draft documents that are designed to hold up under the test of time and can handle all transactions involved in funding the trust.
Avoiding Mistakes When Establishing A Trust
If you would like to discuss establishing a trust or have other legal concerns, please call 916-248-4465 or email my office to arrange for a consultation.