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Trusts Lawyer in Fresno

Helping You Protect Your Assets

As you obtain new assets and collect wealth, you might be considering the best way to protect those assets for future generations. Establishing a trust is an excellent way to preserve your assets and protect them from creditors, lawsuits, and more. There are multiple benefits to creating a trust, and you can choose between different types of trusts to meet the needs of you and your family.

If you’re considering creating a trust, it’s important to work with an experienced legal professional. An attorney at The Bains Law Office can examine your estate plan and determine how best a trust might fit into it. Whether your goal is to pass on assets to future generations, minimize your estate taxes, or donate money to charity, a trust can help you do so.

To learn more about our services and how you can create a trust, call 559-282-8924 for a consultation.

What is a Trust?

A trust is a legal agreement that allows a third party, also called a trustee, to hold and manage your assets. After you pass away, those assets will be distributed to your named beneficiaries according to your instructions.

Depending on the type of trust you choose, you can maintain control over the assets in the trust while you are still alive by naming yourself as trustee. Some trusts even allow you to receive a monthly income from your assets.

What Are the Benefits of Having a Trust?

There are many benefits to creating a trust, and a lot of those benefits depend on the type of trust you create.

The benefits of creating a trust include:

  • Avoiding probate: After you pass away, your will goes through probate, which often takes many months. Trusts do not have to go through probate, saving your family time and money after you pass.
  • Minimizing taxes: If you create an irrevocable trust, the assets in the trust are not considered part of your estate. Lowering your overall estate value lowers your tax burden, saving your family money.
  • Controlling your wealth: You can include specific instructions in your trust for how distributions are made and to whom they are made. If you create a revocable trust, you can access and change those assets at any point.
  • Maintaining privacy: All assets that go through probate become public records. Because trusts do not go through probate, you can maintain your privacy.
  • Protecting your legacy: Certain kinds of trusts protect your assets from any creditor claims or beneficiaries with poor money management skills.

What Are the Two Main Types of Trusts?

There are many different types of trusts you can choose from. The main difference between all trusts is whether they are revocable or irrevocable. Both kinds of trusts have benefits and drawbacks, and it is important to understand both.

The difference between these types of trusts is:

Revocable Trust

A revocable trust can be changed or revoked at any time. As the creator of the trust, you have access to the assets and can remove assets or swap assets at any point. Because of the flexibility that a revocable trust provides, it does not offer the same tax advantages or creditor protections.

Irrevocable Trust

An irrevocable trust cannot be changed or revoked once it has been created. In most cases, an irrevocable trust is used to hold gifts for beneficiaries or future generations. The creator of the trust no longer owns or controls the assets in the trust. Because of this lack of flexibility, irrevocable trusts provide the most creditor protection and tax advantages.

What Kinds of Trusts Are There?

Apart from being irrevocable or revocable, there are many kinds of trusts you can pick from, all of which have different purposes. Depending on your goals for the future, you may choose to create a specific type of trust that meets your needs. Our team can recommend a trust that fits into your estate plan.

Basic types of trusts include:

  • Marital trust: These trusts are designed to provide benefits to your surviving spouse. Generally, they are included in the taxable estate of the surviving spouse.
  • Bypass trust: Allows assets to bypass the surviving spouse’s estate to utilize the federal tax exemption for each spouse.
  • Irrevocable life insurance trust (ILIT): Excludes life insurance proceeds from your taxable estate while providing money to your beneficiaries.
  • Testamentary trust: Included in a will and created after death. The funds are subject to probate and transfer taxes.
  • Generation-skipping trust: Uses the generation-skipping tax exemption to permit assets to be distributed to grandchildren without an additional tax.
  • Charitable lead trust: Allows benefits to go to a charity while the remainder goes to beneficiaries.
  • Charitable remainder trust: Allows you to receive an income from the trust, with the remainder going to charity.
  • Grantor retained annuity trust (GRAT): Designed to shift future appreciation on assets to the next generation.
  • Qualified terminable interest property (QTIP) trust: Provides income to a surviving spouse.

Should You Reach Out to a Trust Lawyer?

Trusts are valuable estate planning tools that can help you plan for the future while maintaining your assets. If you are interested in creating a trust, our team will help you pick a trust that’s right for you and meets your needs. We will then walk you through the entire process, creating a trust with your specific instructions so your wishes are respected.

At The Bains Law Office, we know how important it is to protect your assets and safeguard them for future generations. We are confident that we can establish a trust that’s right for you. To learn more about trusts, contact our law office by calling 559-282-8924 today.