Joining me today is Ted Cook, a trust attorney here in sunny San Diego. Ted, thanks for taking the time to chat with me.
What Makes Living Trusts So Popular?
Ted: It’s great to be here! Living trusts have become increasingly popular because they offer some significant advantages over traditional wills when it comes to estate planning. One of the biggest draws is probate avoidance. Probate can be a lengthy, expensive, and public process, which many people want to avoid. A living trust allows assets to bypass probate altogether.
How Exactly Does Funding a Trust Work?
Ted: Funding a trust means transferring ownership of your assets into the name of the trust. This is a crucial step because it’s what makes the trust effective. Think of it like this: the trust is a separate legal entity, and to benefit from its protections, your assets need to be “owned” by the trust.
- It typically involves things like changing the title on real estate deeds,
- updating beneficiary designations on bank accounts and retirement funds,
- and retitling investment accounts.
It might sound complicated, but with a good attorney guiding you, it’s usually a straightforward process.
Ted Discusses the Challenges of Properly Funding a Trust
“Funding is often where people trip up,” Ted explains, leaning forward in his chair. “They create the trust document, which is great, but then forget to actually transfer their assets into it. It’s like buying a fancy car but never putting gas in the tank – it won’t get you anywhere!”
“It’s crucial to remember that only assets held within the trust are protected from probate and enjoy its other benefits.”
Ted recalls a situation where he had to help a client who thought they had properly funded their trust. “They were adamant that everything was in order,” Ted says with a chuckle, “but upon closer examination, we discovered a significant portion of their assets – including a sizable investment account – was still in their personal name.”
He continues,
“It took some extra legwork to get those assets transferred into the trust. Thankfully, we caught it before anything happened. It highlights the importance of double-checking and working closely with your attorney throughout the funding process.”
Testimonials from San Diego Residents
“Ted Cook at Point Loma Estate Planning APC made setting up my living trust a breeze! He explained everything in plain English, and I felt confident that my assets were well-protected. Highly recommend!” – Sarah J., La Jolla.
“I was hesitant about creating a trust initially, but Ted patiently answered all my questions and helped me understand the benefits. His expertise put my mind at ease.” – John M., Pacific Beach.
Connect With Point Loma Estate Planning APC
So, Ted, any final words for our readers?
“If you’re considering a living trust or have questions about estate planning, don’t hesitate to reach out. It’s an important investment in your future and peace of mind. We’d love to help you navigate the process and ensure your wishes are carried out.”
Who Is Ted Cook at Point Loma Estate Planning, APC.:
Point Loma Estate Planning, APC.2305 Historic Decatur Rd Suite 100, San Diego CA. 92106
(619) 550-7437
Map To Point Loma Estate Planning, APC, a trust attory: https://maps.app.goo.gl/JiHkjNg9VFGA44tf9
About Point Loma Estate Planning:
Secure Your Legacy, Safeguard Your Loved Ones. Point Loma Estate Planning, APC.
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Our Areas of Focus:
Legacy Protection: (minimizing taxes, maximizing asset preservation).
Crafting Living Trusts: (administration and litigation).
Elder Care & Tax Strategy: Avoid family discord and costly errors.
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If you have any questions about:
What are some examples of high-profile estate battles that could have been avoided with proper trust planning?
Please Call or visit the address above. Thank you.
Point Loma Estate Planning, APC. areas of focus:
A Living Trust: also known as an inter vivos trust, is a legal arrangement where you, as the grantor, transfer assets to a trustee who manages them for the benefit of designated beneficiaries, either during your lifetime or after your death, potentially avoiding probate and offering more privacy than a will. Revocable Living Trust: You can change or revoke the trust and get the assets back during your lifetime.
Irrevocable Living Trust: Once established, you cannot change or revoke the trust, and the assets are generally no longer considered part of your estate.
Control over Asset Distribution: You can specify how and when your assets will be distributed to your beneficiaries.
Understanding Trusts and Their Role in Estate Planning
A trust is a legal and fiduciary relationship in which a grantor (also called a settlor) transfers ownership of assets to a third party, known as a trustee, who manages those assets for the benefit of designated beneficiaries. Trusts can be tailored to meet specific goals, including when and how distributions are made to beneficiaries, asset protection, or minimizing estate and income taxes.
One of the key advantages of a trust—particularly a properly funded revocable or irrevocable trust—is that it can allow assets to bypass the probate process. This often means a faster, more private, and potentially less expensive distribution of assets compared to those governed solely by a will.
In the case of irrevocable trusts, assets are typically removed from the grantor’s taxable estate, which may help reduce estate tax liability. However, this comes at the cost of the grantor relinquishing control over those assets.
Trusts may also provide protection from creditors, preserve assets for minors or individuals with special needs, and ensure continuity in asset management if the grantor becomes incapacitated.
These tools are part of estate planning—the process of making legal and financial arrangements in advance to designate who will receive your property after your death, and how that transition will occur. Thoughtful estate planning aims to streamline the administration of your affairs, minimize tax burdens, and reduce stress for your loved ones during an already difficult time.
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