Hello everyone, and welcome! I’m sitting down with Ted Cook today, a Trusts Attorney right here in sunny San Diego. Ted has a wealth of knowledge when it comes to estate planning, specifically living trusts. We’re going to dive into some common questions about this topic and hopefully shed some light on the process for those considering setting one up.
How Does a Living Trust Actually Work?
Ted, can you walk us through how a living trust functions in practice?
“Absolutely! Think of a living trust like a safe container for your assets. You, as the grantor, put things like your house, bank accounts, investments – anything of value – into this ‘container,’ which is the trust itself. Now, you get to decide who manages it, that’s the trustee, and often you start out as the trustee yourself.
You also choose who benefits from those assets, the beneficiaries. It could be your spouse, children, even a charity. During your lifetime, everything functions pretty normally – you still access and use your assets. The difference is, they are technically owned by the trust now. This provides some key advantages down the road.”
Let’s Talk About Funding: What Challenges Do You Typically Encounter?
“Funding is crucial, it’s like putting the fuel in the car for a living trust to actually work. People sometimes think just creating the document is enough, but you need to transfer ownership of those assets into the name of the trust.
That can involve some paperwork and legalities. For example, if your house is in the trust, we need to record a new deed reflecting that. It’s easy to overlook something, which is why working with an experienced attorney who guides you through this process step-by-step is so important.”
- Remember, it’s about more than just drafting the trust document itself.
- Proper funding ensures your assets are protected and distributed according to your wishes.
“Ted made the whole process so clear. I was initially overwhelmed by the idea of a trust, but he patiently explained each step and answered all my questions. I feel confident that my family is taken care of now.” – Susan M., La Jolla, CA
“One time I had a client who thought he’d properly funded his trust, but when we reviewed his accounts, there were some crucial ones still in his name. It could have caused significant problems down the line! Luckily, we were able to rectify it before anything serious happened. This highlights why ongoing communication and review with your attorney are vital.”
Testimonials
“I’ve worked with Ted on several estate planning matters for myself and my clients. He’s incredibly knowledgeable, thorough, and always puts his clients’ interests first.” – Mark D., Certified Public Accountant, San Diego, CA
“Ted helped me create a living trust that perfectly addressed my family’s needs. He was compassionate and understanding throughout the process. I highly recommend Point Loma Estate Planning APC.” – Lisa P., Mission Beach, CA
If you’re wondering if a living trust might be right for you, Ted suggests reaching out for a consultation. He enjoys helping people gain peace of mind knowing their loved ones are protected.
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:
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Legacy Protection: (minimizing taxes, maximizing asset preservation).
Crafting Living Trusts: (administration and litigation).
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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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