Torrance, CA Trusts Lawyer

Strategic Trusts Attorney Helping Clients Preserve Wealth in Torrance, California

For many people and families, wills may not fully address their estate planning needs. Trusts are another helpful tool that may be used to manage and distribute assets. They offer an additional level of control, flexibility, and protection. For people with complex assets, blended families, minor children, or loved ones with special needs, a trust can be an essential part of a comprehensive estate plan.

The Law Offices of Russell M. Ozawa helps clients in Torrance create trusts that reflect their goals and provide protection for the people they care about. Our attorney will take the time to understand each client's unique situation. He can develop estate plans that will address clients' current needs and adapt to the changes that may occur in the future.

What Is a Trust?

A trust is a legal arrangement in which a person will transfer certain assets they own into the control of a trustee, who will hold and manage those assets and make sure the assets are passed on to beneficiaries. The terms of the trust, including how assets should be managed and when and how they should be distributed to beneficiaries, are set out in a written trust document.

Trusts can serve a wide range of needs and goals. They can be used to avoid probate, reduce potential estate taxes, provide for the needs of minor children or people with disabilities, support charitable causes, protect assets from creditors, and ensure that assets will be distributed in a controlled and deliberate manner rather than all at once. Unlike a will, which only takes effect after a person's death, certain types of trusts can provide benefits and protections during a person's lifetime as well.

How a Trust Is Created

Creating a trust begins with drafting a trust document that clearly sets out the terms of the arrangement. This document identifies the settlor (the person who creates the trust), names the trustee and any successor trustees, identifies the beneficiaries, and specifies the rules for how the trust will be managed and how its assets will be distributed.

Working with an attorney to create a trust can help ensure that the document will be drafted correctly and will include legally sound instructions that will fully detail the settlor's intentions. A well-drafted trust document can eliminate ambiguity, prevent disputes among beneficiaries, and make sure a person will be able to achieve the intended benefits.

Funding a Trust

Creating a trust document is only the first step. The trust must also be funded, meaning that assets must be transferred into the trust. Funding a trust will typically involve retitling real estate into the name of the trust, changing the ownership designations on bank and investment accounts, and assigning business interests or personal property to the trust. Assets that are not transferred into a trust during the settlor's lifetime usually will not be governed by the terms of the trust document after their death.

Our lawyer can help ensure that clients complete the funding process correctly. He can help identify which assets should be transferred into a trust and ensure that the proper steps are followed to manage and protect assets.

Revocable Living Trusts

Many estate plans use revocable living trusts. These trusts will be created during a person's lifetime, and their terms can be modified or revoked at any time. The settlor will usually serve as the initial trustee, maintaining full control over their assets during their lifetime. When the settlor dies or becomes incapacitated, a successor trustee will step in to manage the trust and distribute the trust's assets based on the terms of the trust document.

Avoiding Probate

One of the primary advantages of a revocable living trust is that assets held in the trust will not need to go through the probate process. Because the trust owns the assets, there is no need for court involvement before these assets can be distributed. This can save a great deal of time and expense, since administrative and legal costs will not be required.

Privacy

Unlike a will, which becomes a public document when it is admitted to probate, a trust will remain private. The terms of the trust, the identities of its beneficiaries, and the nature and value of assets will not be disclosed to the public. This can provide benefits for families who value privacy.

Planning for Incapacity

A revocable living trust can help ensure that assets will be managed correctly if the settlor becomes incapacitated. When a successor trustee has been designated ahead of time, a court-supervised conservatorship will not be necessary. The successor trustee will be able to manage the settlor's financial affairs and use their assets to provide for their needs.

Irrevocable Trusts

Unlike a revocable living trust, an irrevocable trust generally cannot be revoked or modified. By transferring assets into an irrevocable trust, the settlor will give up ownership and control of those assets, placing them into the control of a trustee. This can provide a number of benefits, including:

Asset Protection

Because assets transferred into an irrevocable trust are no longer owned by the settlor, they may be protected from creditor claims. For people who may face liability related to their business or who expect to encounter financial challenges, an irrevocable trust can provide protection for assets and make sure they will be used to benefit their loved ones.

Estate Tax Planning

Irrevocable trusts can be a valuable tool for reducing estate taxes. By removing assets from their estate, a person may reduce the amount that would be subject to federal estate taxes after their death.

Special Needs Trusts

A special needs trust or supplemental needs trust can provide financial support for a person with a disability without disqualifying them from government benefit programs such as Medicaid, Medi-Cal, or Supplemental Security Income. Because these programs will typically only be available to people who do not own valuable assets, leaving an inheritance to a person with a disability could result in the loss of critical benefits.

A special needs trust will allow a beneficiary to receive supplemental support that may be used for expenses such as education, recreation, transportation, and personal care. The assets in the trust will not affect a person's eligibility for government programs.

For families in which a loved one has a disability, a special needs trust can be one of the most important parts of a comprehensive estate plan. Our attorney can help clients understand the steps to follow to create this type of trust and ensure that a beneficiary will have access to essential government benefits while receiving ongoing support.

Charitable Trusts

For people who wish to incorporate philanthropy into their estate plans, charitable trusts can be created to support important causes while also achieving tax benefits. Our lawyer can provide guidance on the options that may be available, including:

Charitable Remainder Trusts

A charitable remainder trust will allow a person to transfer assets into a trust, receive income from the trust during their lifetime, and donate the remaining assets to one or more charitable organizations after their death. This can provide them with an ongoing income stream, reduce potential estate taxes, and utilize charitable deductions.

Charitable Lead Trusts

A charitable lead trust works in the opposite direction. The trust will make payments to a charitable organization for a specified amount of time, and the remaining assets will be distributed to the settlor's family or other beneficiaries at the end of that term. This can be an effective way to transfer wealth to loved ones while supporting charitable causes and potentially reducing taxes.

Reviewing and Updating a Trust

Like a will, a trust should be reviewed periodically and updated when life circumstances change. Marriage, divorce, the birth of a child, the death of a trustee or beneficiary, significant changes in assets, or changes in tax laws may all be reasons to review a trust and determine whether changes may need to be made to ensure that it will continue to serve its intended purpose. Our attorney can work with clients to review trust documents and other estate planning documents, and he can provide guidance on what updates may need to be made so that their estate plan will continue to meet their needs.

Contact Our Torrance Living Trusts Attorney

At the Law Offices of Russell M. Ozawa, our attorney can advise you of your options regarding trusts and other estate planning tools. He will help you build an estate plan that will provide security for you and the people who matter the most to you. Contact our Torrance, CA living trusts lawyer at 626-499-4500 to arrange your free consultation.