The main benefit of creating a Living Trust is to avoid probate with the property you left to loved ones before they take possession. However, your estate may be subject to unnecessary taxes or probate if your Trust is not up-to-date. Or possibly, individuals you no longer want as beneficiaries could receive your assets. Also, maybe you want someone included who you accidentally left out. A Living Trust attorney in Orange County, CA can help assist you in updating your Living Trust.
Avoidance of Probate
In the unfortunate event, something should happen to you, avoidance of probate is crucial. Probate is the process by which the court supervises the payment of your debts, noticing potential creditors and claimants of your estate, and by the determination of the court, eventually, distribute your property to your beneficiaries.
With an average probate, your beneficiaries will not receive anything for several years. Also, due to approximately 5-10% of your property being used up for court and lawyer fees, your beneficiaries will receive less than what was originally left to them. A newspaper publication must be made to inform the world of your impending probate when a Will is probated. Fortunately, however, a Living Trust helps with avoidance of probate while also keeping its terms private and out of the public’s view.
Tax Elimination
Avoidance of probate with a Living Trust does not affect taxes. However, an experienced Living Trust attorney in Orange County, CA has the knowledge to draft a Living Trust that can significantly reduce or eliminate estate taxes for individuals who would be otherwise subjected to this type of tax. They understand how the individual estate tax exemption works and what is calculated for potential estate taxes, such as life insurance. Proper planning of your estate can make a substantial difference when it comes to estate taxes.
The creation of a customized Living Trust can be beneficial for you and your beneficiaries. Also, keeping it current helps to ensure your goals and desires for your estate are fulfilled. An experienced Living Trust attorney in Orange County, CA can assist in reviewing your Living Trust every few years to ensure accuracy.
Living Trust creation and review is essential when planning your estate. For more information, contact Tompkins Law, or call 714-385-0044.
