In California, estate planning processes outline the most effective practices for estate owners to protect their assets. During the probate process, creditors apply a lien against the estate in an effort to collect outstanding balances. All estates enter probate when they are of a substantial cash value. A Trust Administration Attorney in Yucaipa CA helps estate owners create a trust for asset protection.
Establishing an Irrevocable Trust
An irrevocable trust requires the estate owner to create documentation about their trust and decide what assets are transferred. The trust is placed in the estate owner’s name, and they have full control over the assets.
Why Do You Need It?
An estate owner uses the irrevocable trust to separate assets from their estate and protect the assets from probate. Once the assets are transferred, the probate court cannot access them. The owner won’t have to worry about a creditor placing a lien on the asset and seizing it to collect a debt. The estate owner maintains full control over the trust until they die.
Who is the Successor?
The successor is anyone selected by the estate owner to take over the trust when the original owner dies. Their selected individual acquires ownership of the assets through the trust and has the authority to remove any assets from the estate if they want. Successors can sell the assets or use them however they choose. They make all decisions about the assets.
Are Tax Implications Applied?
Tax implications are implied when property tax is owed. However, the successor won’t face any inheritance taxes for the trust. The trust is a beneficial choice for leaving several assets to a family member without leaving a large tax bill or causing any other financial hardships for them.
In California, estate planning processes help estate owners avoid common mistakes that lead to asset seizure. The plans include a trust to transfer assets out of the estate. Once the assets are transferred, they are no longer a part of the estate, and the probate court cannot touch them. Estate owners who need more information contact a Trust Administration Attorney in Yucaipa CA through Betty Auton-Beck Professional Law Corporation right now.
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