Probate in California is unfortunately an expensive and time-consuming process. Probate refers to the court proceedings to administer the estate of a deceased person and distribute their assets to heirs and beneficiaries. Court costs and legal fees can be prohibitive. For this reason, many people who are beginning the estate planning process are interested in avoiding probate.
Posts tagged "Trusts"
A California pet trust can ensure care for a beloved companion
Trusts are a popular estate planning vehicle in California. But trusts can be used for many purposes besides managing financial assets for the benefit of loved ones. In fact, California's Probate Code specifically says a trust can be established for any purpose that is not illegal or contrary to public policy. A good example of a specialized trust is the pet trust.
Is it possible to modify an irrevocable trust in California?
In this blog we have on several occasions discussed the advantages of a revocable trust for estate planning purposes in California. A revocable trust is what the name implies: it can be modified or terminated at any time during the settlor's lifetime. But what about an irrevocable trust? Can it ever be modified or terminated?
Transferring assets is key to a California trust
The revocable trust is a popular estate planning vehicle in California. With a revocable trust an individual can avoid probate, protect the person's privacy, and provide for management of assets both during the person's lifetime and after death. To establish a trust, the first major step is to prepare and sign a trust document which sets out how the assets in the trust are to be managed, and under what circumstances income and principal are to be distributed to the beneficiaries.
Can a trust shield an inheritance from creditors in California?
In California, the revocable trust is a popular estate planning vehicle, in part because it provides for management of trust assets by a trustee during the settlor's life and after their death. A trust will typically provide that income generated by the trust assets will be paid to the beneficiaries at designated intervals. The trust may specify circumstances under which the trustee can pay trust principal to the beneficiaries, and may provide for lump sum payments of principal at designated times. A revocable trust may also give the trustee discretion about when to make payments to the beneficiaries.
What are the different types of estate planning trusts?
This California estate planning blog has discussed trusts in the past. Generally, a trust is a legal device that protects a property right for a person while that property is held by another individual. Though trusts can serve a wide range of intents and purposes, they are generally grouped into one of two categories -- revocable or irrevocable.
Tax benefits of an irrevocable life insurance trust in California
In last week's post we discussed what assets are included in one's estate under California law for estate planning - and estate tax - purposes. One of the assets we mentioned in that post is life insurance. If a person is the owner of a life insurance policy, the proceeds of that policy will be included in their taxable estate for federal estate tax purposes.
Benefits of an inter vivos trust in the event of incapacitation
Thinking in the worst case scenario is often uncomfortable for California residents, but to ensure financial stability and that wishes are carried out, in the event of incapacitation, it is necessary. One method that can be beneficial to protecting one's property and financial assets is by having a living trust. Before moving forward with it, however, it is important to understand how it can be beneficial.
Protecting Californian children with a trust
While it might be an uncomfortable subject for people in Sacramento to broach, the realities of life are that death is inevitable. With that in mind, people with children need to be aware of the various options that are available when it comes to estate planning. This is especially true if the children are young. Having a grasp on what works best for the individual can help in making an informed choice.
Trustees have broad powers under California law
In California, trusts have long been a favored means of estate planning. Trusts provide great flexibility can help avoid probate and often significant tax advantages.
