Estate Planning Attorney Orange County

Trust Attorney Orange County

To assist in establishing a trust, a trust attorney provides crucial legal support to trustees, handling responsibilities such as drafting documents to protect assets from legal challenges like lawsuits and taxes. Furthermore, a trust attorney offers guidance on optimizing estate tax management through various estate planning strategies, taking into account factors like age, income, and the size of the estate.

How Much Does It Cost to Set Up a Trust?

The cost of setting up a trust largely depends on the desired level of asset protection and its potential impact on your family. While DIY platforms offer a basic solution, trust inheritance attorneys provide tailored trusts designed to meet your specific needs and address family dynamics. The rise in trust litigation often stems from trusts that fail to adequately consider family dynamics, leading to disputes post-mortem. At Hess-Verdon & Associates, we believe in the unmatched value of in-person consultations with an estate planning attorney to thoroughly identify and integrate potential issues into the trust, aiming to avoid the probate process and ensure the well-being of your estate and family.

Do You Need a Lawyer to Create a Trust?

Considering whether you need a lawyer to create a trust is akin to determining if you need a doctor for medical advice on a concerning issue. While it’s possible to create a trust on your own, professional legal assistance is invaluable, especially if the trust is ever contested. Disputes can lead to family discord, highlighting the importance of a well-conceived estate plan.

Why Does a Trustee Need an Attorney?

As a trustee responsible for the trust administration process, adhering to deadlines and maintaining clear communication with beneficiaries is crucial. A trust attorney can provide essential guidance, assist with fiduciary responsibilities, and help prevent potential litigation, ensuring the smooth operation of the trust.

What is the Role of an Estate Planning Attorney?

Understanding the role of an estate planning attorney begins with dispelling common myths about trusts, wills, and probate. In California, owning assets over $150,000 necessitates considering a trust to effectively pass your estate to your heirs upon your demise. Without a will or trust, your estate could face challenges, underscoring the importance of legal guidance in estate planning.

Key topics to explore include:

1. Dying Intestate (without a will)
2. Dying with a will (California fees)
3. Dying with a trust

1st Myth: “I have a will, so my family won’t have to go through probate when I die.”

Answer: False! Having a will does not exempt your estate from probate. Unlike a trust, a will is public and guarantees probate proceedings, essentially indicating your desire for your family to undergo the probate process.

What are some of the differences between a will and a trust?

Will Vs. Trust

An estate planning attorney can highlight several key distinctions between Wills and Trusts, including:

1. Privacy: Trusts can offer greater privacy than Wills, as they allow your financial matters to remain private and not become part of the public record through probate.
2. Avoiding Probate: Unlike a Will, a living trust bypasses the probate process, allowing for a more straightforward and private distribution of assets to beneficiaries.
3. Cost Efficiency Over Time: While creating a Will might initially be less expensive, the associated costs after death, such as executor fees and legal expenses, can add up. In contrast, a trust, despite its higher initial setup cost, can lead to long-term savings by avoiding probate court fees and simplifying estate management through a successor trustee.Once you pass, a successor trustee manages the estate instead of the probate court. Hess-Verdon estate planning attorney will help you through the estate plan process.

Working with a Hess-Verdon estate planning attorney can provide valuable guidance throughout the estate planning process, ensuring your estate is managed according to your wishes.

What Type of Trust Should I Get?

Choosing the right trust depends on various factors, and indeed, there are many types to consider. Some of the common trusts include:

• QTIP Trusts (Qualified Terminable Interest Property Trusts)
• GRUTs (Grantor Retained Unitrusts)
• GRATs (Grantor Retained Annuity Trusts)
• SNTs (Special Needs Trusts)
• Dynasty Trusts
• Totten Trusts (also known as Payable-on-Death Accounts)
• CRT Trusts (Charitable Remainder Trusts)

Each trust serves different estate planning goals and has unique features. Consulting with an estate planning attorney can help you navigate these options and choose the one that best aligns with your needs.

Trusts are generally categorized into two main types:

1. Revocable Trusts: These can be altered or revoked by the grantor during their lifetime.
2. Irrevocable Trusts: These cannot be easily changed once established, providing certain tax benefits and asset protections.

Key Takeaway: Many opt for a revocable trust for its flexibility during the grantor’s lifetime. Upon the grantor’s passing, it typically becomes irrevocable, and the successor trustee then manages the estate.

HERE ARE SOME TYPES OF IRREVOCABLE TRUSTS:

Key takeaways: Trusts can include provisions to lower estate taxes.

1. Insurance Life Insurance Trust [ILIT]: Many people don’t understand that a 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 an irrevocable trust explicitly set up to own a life insurance policy.

2. Qualified Terminable Interest Trust [QTIP]: a QTIP is an A/B trust arrangement 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. Charitable Remainder Unitrust (CRUT)

Other types:

1. Grantor Retained Annuity Trust (GRAT)
2. Qualified Personal Residence Trust (QTIP)
3. Intentionally Defective Grantor Trust (IDGT)
4. Special Needs Trust (SNT) and Third-Party SNT (Special needs)
5. Spousal Lifetime Access Trust (SLAT)
6. Pros and Cons of Spousal Lifetime Access Trusts
7. Qualified Personal Residence Trust (QPRT)
8. Dynasty Trust | Legacy Trust
9. Irrevocable Life Insurance Trust (ILIT)
10. Charitable Lead Trusts (CLT)
11. Bypass Trust | AB Trust
12. Crummey Trusts: Preserve Gift Tax Exclusion

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 complete control and ownership of the property while reducing your estate tax liability.

What should I consider in achieving competent counsel?

Choosing the right Orange County living trust attorney is very important. Yes, you can try to DIY (do it yourself), but in today’s litigious society, you want to stay out of probate court; therefore, it is inadvisable. If you live in California, it is even more of a reason to do your due diligence to protect your estate instead of leaving it up to chance. Why do people choose a Will over a trust? This is primarily due to cost, but the downside is that the costs and legal fees after death are higher with a Will because Wills require the probate court’s supervision.
When calling into a trust attorney, you will want them to know the following:

Avoid Probate: Regarding probate law, let the estate planning lawyer know you want to avoid probate when you die. An estate plan will help you attain an attorney-client relationship.

Years of Experience: Find out how many years the estate planning lawyer has been preparing Living Trusts and the number they have completed.

Ask who will draft and prepare your Trust document: While DIY Living Trust platforms exist, at Hess-Verdon, you receive personalized service from our attorneys and paralegals.

The larger the estate, the more crucial advanced estate planning becomes. All properties and assets should be thoroughly considered to avoid triggering probate.

How Many Administered: Inquire about the number of Living Trusts the attorney has administered upon a client’s death or incapacitation.

Ask how long it will take: Understanding staffing levels is essential to ensure your circumstances are thoroughly reviewed.

Checkups: Regular reviews, ideally every 3-5 years, are crucial. Should any significant changes occur, consult one of Hess-Verdon’s trusted attorneys promptly.

Note: In cases of immediate hardship, please contact 888-318-4430.

Note: According to the California Probate Code, estates valued at $150,000 or less are exempt from probate. Larger estates will require probate, underscoring the importance of selecting the right living trust lawyer for guidance.

Contact Hess-Verdon & Associates, a Newport Beach, Orange County estate planning lawyer, today at 888-318-4430.