Articles Posted in Trusts

A charitable lead trust (CLT) is a trust where assets are transferred to a trust for the benefit of a charitable entity.  The CLT then makes payments to one or more charities for fixed duration of time or for the lifetime of a selected individual.  When the CLT’s term ends, the remaining assets are transferred…

A Spousal Lifetime Access Trust or “SLAT” is a special type of irrevocable trust.  A SLAT is created by one spouse for the benefit of the other.  The spouse who creates the SLAT is referred to as the grantor and the spouse who receives gifts from the SLAT is referred to as the beneficiary spouse. …

An irrevocable trust is a type of trust that once created is not modifiable by the individual who created it (the “Grantor”).  In fact, this type of trust cannot be changed, amended, or terminated without the permission of the beneficiaries (the individuals or entities that receive, for example, money, property or other assets under the…

Did you know that it’s National Estate Planning Awareness Week?  In 2008, the U.S. Congress passed House Resolution 1499 designating the third week in October as National Estate Planning Awareness week.  According to Caring.com’s 2022 Wills Survey, over 66% of Americans believe that having an estate plan is important, but only 1 in 3 Americans…

The unlimited marital deduction is part of the United States Federal Estate and Gift Tax law.  The law allows married U.S. citizens to transfer an unlimited amount of property and money to their spouse at any time free of any taxation (both estate and gift taxes).  These spouse-to-spouse transfers are not taxed.  The largest transfers…

A revocable living trust is a type of trust that can be modified during the creator’s lifetime.  California residents commonly use revocable living trusts to: Name the individuals who will inherit your property (your “beneficiaries”). Avoid probate (a time consuming and expensive court proceedings where a judge determines who inherits your money and property). Avoid…

A trust is a contract. The person who creates a trust is called a grantor. The person who carries out the terms of the trust is called the trustee.  The persons or organizations who receive property or money from a trust are called beneficiaries.    The trust is, in essence, an agreement between the grantor…

How Does a Living Trust Work? A living trust is one of the most efficient estate planning tools available but there are some common misconceptions. According to a survey made by Caring.com only 42% of responders have created or prepared an estate plan. There are three reasons why someone may put off their estate planning:…

Common Mistakes with Living Trusts One of the first things we tell our clients is that the key to better protection for your assets is to prepare and fund your trust correctly. If you do not take the right steps, your family may end up in probate court. Failing to properly prepare will cost you…

A living trust is a legal document that describes how you want to transfer your assets when you die. In this fashion, it’s like a will but creating a living trust centered estate plan has several advantages. It allows you to avoid probate. The transfer of your assets can remain confidential. If you merely have…