Ultimate Guide to Living Trusts

1-888-318-4430

Living Trusts

Living Trust

Learn what type of trust is needed based on how you hold property title and other various factors. There are significant differences between the types of trusts. Let a Hess-Verdon Estate Planning Law Firm guide you.

In this section, you’ll learn about the benefits of a Living Trust – which go far beyond avoiding probate. We will go through the advantages and disadvantages of having a trust. Also, you will learn the differences between a revocable trust vs. an Irrevocable trust.

Revocable Living Trust
(definition)

 

HESS-VERDON IS YOUR #1 SOUTHERN CALIFORNIA TRUST & ESTATE LAW FIRM

What is a Revocable Living Trust?

A revocable trust has provisions that can be canceled or altered by the Trustor. During the life of the living trust, the Trustor can receive distributed income. At death, the property transfers to the beneficiaries. So a revocable living trust is part of estate planning that assists the Trustor in protecting and managing assets. Once the Trustor dies, the revocable trust becomes irrevocable upon death.

Now, living trusts have become very popular in the last 50+ years because it protects your family’s legacy in many ways that a Will does not. It is a wise choice to learn about Trusts, yet not all trusts are suitable for all clients. When trusts are appropriate, they come with many advantages! 

So let’s get started.

A living trust is a set of legal documents created during a “trustors” lifetime. 

During the creation of the trust, you will select a successor trustee who has responsibility for managing the estate for the benefit of the beneficiary(s). The Trustee allows for a smooth transfer of the settlor’s assets and bypassing the very lengthy and costly probate process. 

Takeaway: The Trustor can be the Trustee. Just make sure you designate a successor trustee. 

Do I need a living trust?

If you want to protect your estate and not have a high cost by legal and probate court costs, then Yes, consider getting a living trust. 

What are the advantages of a living trust? 

A living trust is needed when you want to have the following:

1. Stay out of probate: A living trust does not go through probate, which means the distribution of the estate is clear to the beneficiaries, unlike a will. 

2. Keep all your assets private and out of public view: Unlike a will, a trust will usually be kept private and distribute the assets in private. 

3. A Living Trust saves you money in the long run. Though a Trust most times than not cost more upfront than a Will, a living trust will inevitably save in probate costs and quite possibly even from beneficiaries contesting the trust. With an astute Living Trust attorney, they can ensure your Living trust has the protection devices from tax-related issues and a host of other documentary defect contests.

4. Avoiding a Conservatorship: Having a living trust can be extremely helpful if the Trustor one day becomes incapable of taking care of their financial affairs. Without the authority conferred by the living trust document, family members must usually go to court to get the legal authority. The family will have to get legal authorization to manage the incapacitated Trustor’s finances – which is a lengthy and public process. 

5. Protects minor children: A trust can hold money for minor children. The funds can be allocated at different times based on age, for example.

6. Guardianship: The trust can provide a set of instructions by the Trustor determining who takes care of the minor children in case one or both parents pass away.

Revocable vs. Irrevocable Trusts: What are the differences

We will first start with the revocable trust. The revocable trust allows the Trustor the ability to amend its terms at any time. The Trustor can remove beneficiaries, designate new ones, as well as stipulate the management of the assets within the trust. You may have read about a revocable trust, or merely living trust, family living trusts. They are synonymous. 

The disadvantage of a Revocable Trust vs. Irrevocable trust

Now the drawbacks of the living trust may be the following:

  1. When funding the living trust, it will require the Trustor to reregister securities, real property, and other assets in the trust name. You remain in complete control as the Trustor. Reregistering may involve additional costs, such as filing fees.
  2. Revocable Trusts do not save income taxes, nor estate taxes. In most cases, the state treats the revocable trust as the grantor’s property for both estate and income tax.
  3. Unhappy heirs can contest a revocable trusts. 
  4. Creditors can go after revocable trusts. 
  5. Trusts are not all drafted equally. It depends on the experience of the drafting attorney and your family situation to achieve the best result for your estate planning.

As can be seen, there are advantages and disadvantages, and thus why it is imperative to speak to an estate planning attorney. 

Trustee Removal

Are you a Trustee or Beneficiary where protection of the Trustors wishes are being challenged and causing family disputes?

Develop strategies on preempting a Trust dispute and discover What You Need to Know About the Trustee Removal Process

Hess Verdon has a deep bench and knows both sides of the equation to remove or suspend a Trustee or to safeguard the Trustee from a frivolous legal process. Hess-Verdon top litigators will help you stay on track!

 

Contact Us Green #1 Ultimate Guide to Living Trusts | Revocable vs. Irrevocable Trusts

 or Call Now

(949) 706-7300

Beneficiary is attacking me

Attacked by a beneficiary who objects to how you, a Trustee, or Administrator, is handling an estate?

Prevent Trustees from Making Some Common Mistakes. 

Duties | Delays | Choices | Distributions

Timing on each one is critical to avoid litigation

Hess-Verdon has over 30 years of dealing with Beneficiary and trustee disputes. Let us review your situation. You’ll be glad you did. Contact us for a No Charge, No-Obligation Consultation.

Contact Us Green #1 Ultimate Guide to Living Trusts | Revocable vs. Irrevocable Trusts

 or Call Now

(949) 706-7300

Contesting a Trust

 Are You Considering Contesting a Trust or the most recent amendment? Was there a capacity issue or undue influence?

Be Careful when contesting a trust and know the elements it takes to protect the trust assets. Reserve your rights before Statute of limitations happen!

Hess-Verdon works hard to resolve Trust and Estate issues and preserve the estate by minimizing costly litigation. Contact us for a No Charge, No-Obligation Consultation.

 

Contact Us Green #1 Ultimate Guide to Living Trusts | Revocable vs. Irrevocable Trusts

 or Call Now

(949) 706-7300

Hess-Verdon Team of attorneys

See our Successful Reviews!

stars 5 #1 Ultimate Guide to Living Trusts | Revocable vs. Irrevocable Trusts

“I have been working with this firm since 1994; you can’t beat a firm like this, that is so ethical and competent.”

Dixie Fisher

Client Since 1994

stars 5 #1 Ultimate Guide to Living Trusts | Revocable vs. Irrevocable Trusts

“We’ve always felt comfortable sharing our concerns with Hess-Verdon & Associates and have felt confident that the job was well done and the concerns answered.”

Malou Cole

Client Since 2006

Have Your Case Reviewed Today by a Hess-Verdon Attorney
Call 1-888-318-4430

How much should a revocable living trust cost?

We have seen living trust in California created as low as $699.00 to $20,000.00 for similar work. 

How can this be? 

The concern is always, “are you being gouged, or are you being short-changed with a boilerplate document that won’t be effective when you need it!”

When it comes to the price of a revocable living trust in California, the range should be $3,500 to $5,000 based on the complexity of your estate. 

The reason is the following for the range. If your estate is one property, a bank account, and other investment assets, you should fall on the lower end of the spectrum. You see, the more assets, whether it be businesses you own, additional homes, stock certificates, and more, will determine the “depth” of the time it takes the attorney to draft your trust. Also, spend time on the family dynamics to make sure your trust avoids trust disputes or trust litigation in the future.

You found the right team. See our Successful Reviews!

Hess-Verdon & Associates will Guide You through the Trust Process!

Here are some types of Irrevocable trusts:

1. Insurance Life Insurance Trust [ILIT]: Many people don’t understand that life insurance policy, depending on the amount, can trigger an estate tax bill. One option to mitigate estate taxes is an ILIT. An ILIT is a type of living trust that was explicitly set up to own a life insurance policy.

2. Qualified Terminable Interest Trust [QTIP]: a QTIP is an A/B trust arrangement and used by a married individual.

3. Charitable Remainder Trust: A charitable trust allows you to donate generously to a charity of your choice, and give you and your heirs a big tax break. Advantages are a reduction in Income taxes, estate taxes, capital gains tax.

4. Testamentary Trust: et is a trust, when established in the last will, typically created for the benefit of minor children.

5. Funded or Unfunded Trust

6. Credit Shelter Trust

7. Blind Trust: In a blind trust, the Trustee has full discretion over the assets. Initiated by the Trustor and can be terminated, but cannot exercise any control. Typically used when the investment holdings could potentially put the Trustor in conflict of interest with a regulatory issue. Usually used by a wealthy person entering into political office.

How does an Irrevocable trust work?

An irrevocable trust is one essential part of estate planning, asset protection, and tax strategy planning. With an irrevocable trust, the Trustor gives up full control and ownership of the property. 

 

Needing Trust & Estate Planning? – What You Should Know!

Hess-Verdon – Best Trust & Estate Attorneys

and what to consider when working with Hess-Verdon.

Your Orange County Trust Attorneys 

 

Changed Trust Before Death

Was a Trust changed while under the care of a brother, sister, or institution and possibly been influenced?

 Act fast and attain a strategy on resolving fraud, forgery, undue influence, while protecting your rights and staying on the right side of the court.

 Hess-Verdon & Associates helps seek proper legal advice and provides you with the sound direction you need to understand what constitutes an invalid Trust or amendment. Contact us for a No Charge, No-Obligation Consultation.

 

Contact Us Green #1 Ultimate Guide to Living Trusts | Revocable vs. Irrevocable Trusts

 or Call Now

(949) 706-7300

Need a Second Opinion?

Are you feeling your attorney is not answering your questions? 

Up against a deadline | Going over Budget | Case Taking too Long 

These are just a few reasons why you need a second opinion.

Hess-Verdon has a deep bench experience and works with the courts. If you have questions that your attorney is not answering, or the litigation has taken unexpected twists and turns, Hess-Verdon has handled Trust and Estate Lawsuits for over 30 years. Do not panic; Hess-Verdon is ready to help you today.

 

Contact Us Green #1 Ultimate Guide to Living Trusts | Revocable vs. Irrevocable Trusts

 or Call Now

(949) 706-7300

You found the right team. See our Successful Reviews!

stars 5 #1 Ultimate Guide to Living Trusts | Revocable vs. Irrevocable Trusts

Truly exceptional law firm! They provided concise, decisive legal assistance during unanticipated events during estate proceedings. They made a bad situation better. Our family will always be grateful. There is no one I would rather have than Hess-Verdon & Associates representing my family.

Wade Shannon

Client Since 2014

stars 5 #1 Ultimate Guide to Living Trusts | Revocable vs. Irrevocable Trusts

“Definitely a firm that will “fight to the finish.”

Frances Gruben

Client Since 2010

stars 5 #1 Ultimate Guide to Living Trusts | Revocable vs. Irrevocable Trusts

“Outstanding expertise and client support”

Suzanne Casey

Client Since 2018

stars 5 #1 Ultimate Guide to Living Trusts | Revocable vs. Irrevocable Trusts

“Hess-Verdon is very professional and knowledgeable on corporate law, that can help with estate planning matters.”

Roy Trachsel

Client Since 1995

advanced Trust & Estates, Business and Real Estate Litigation Attorneys

Schedule an Appointment Today. 
The Hess-Verdon Team is Ready to Help You!

Call: 1-888-318-4430

Jillyn Hess-Verdon

Jillyn Hess-Verdon

Managing Partner

R. Kurt Ketchum

R. Kurt Ketchum

Associate Attorney

David Crumpton

David Crumpton

Associate Attorney

Stacy L. Olsen

stacy l. Olsen

Associate Attorney