Sacramento Trusts Lawyer
California law firm advises on creating legal instruments that meet your needs
Determining whether a trust serves your needs can be a complicated question. Even if you are certain that you want to establish a particular type of trust, it is essential to create the legal instrument properly to avoid problems in the future. Once the trust is in force, administering it correctly and dealing with challenges might also require legal counsel. K. Greg Peterson, a Professional Law Corporation in Sacramento handles these trust-related matters and others for clients throughout the state. As a California State Bar Certified Specialist in estate planning, probate and trust law with more than 35 years of experience, you can rely on Greg Peterson to find the best way to accomplish your objectives.
What is a trust?
A trust is a legal instrument that holds and distributes assets in accordance with instructions set forth by its creator. Administration of the trust is carried out by a trustee, who has a fiduciary duty to honor the terms of the instrument. There are numerous reasons people might establish a trust, such as:
- As an estate planning tool that passes on assets outside the probate system
- To maintain privacy by using the trust to make significant financial transactions
- To lower an individual’s net worth in order to maintain eligibility for Medicaid or other benefits
- To reduce tax liability associated with personal wealth
- To create a legacy by determining how trust assets are spent even after one’s death
After we discuss your particular estate planning and financial goals, we can show you if a trust is the best way to achieve them.
Which type of trust is right for you?
You can tailor a trust to your personal specifications, but many fall into the following general categories:
- Revocable or living trusts — Many people choose to shift their assets to a revocable living trust, which allows them to pass whatever property remains at the time of their death to named beneficiaries without requiring them to go through probate.
- Irrevocable trusts — While a living trust can be dissolved or adjusted at any time, other trusts are irrevocable, even if the creator ends up changing their mind. By moving funds into this type of trust, a person might be able to reduce their tax exposure or qualify for Medicaid long-term care coverage.
- Special needs trusts — Parents set up these trusts to provide lasting financial support for special needs sons and daughters.
- Charitable trusts — You might wish to create a trust for the benefit of a charity or family member. This can be done before your death and can be supplemented with assets from your state after you pass away.
- Life insurance trusts — By establishing a trust as the beneficiary of your life insurance policy, you have the ability to direct how those proceeds are used.
- Dynasty trusts — Sometimes referred to as a “generation-skipping trust,” a dynasty trust enables wealthy families to lower their overall tax burden by directing money to their grandchildren.
Whatever trust or trusts work best for your situation, our firm will make sure the pertinent documents are prepared with the highest degree of professionalism.
Trust administration
The trustee is the individual or firm legally responsible for carrying out the instructions set forth by the trust creator. Often, this responsibility is relatively straightforward, but there can be instances where a beneficiary believes that the trustee is violating their fiduciary duty. For example, the language of the document might be vague about exactly what type of control the trustee has over the assets and the beneficiary might contend that the trustee has overstepped their bounds. Attorney Greg Peterson is an accomplished trust litigator and represents trustees and beneficiaries in disputes over trustee performance as well as the interpretation and validity of trust instructions.
What is the difference between a trust and a will?
There are several important differences between wills and trusts, including the fact that you can create a trust to manage and disperse assets during your lifetime while a will only can be executed following the testator’s death. When someone chooses to distribute property through their will after they’ve passed away, that process is supervised by the relevant probate court, while you can create a trust that authorizes the trustee to transfer assets to beneficiaries without going through probate. You might also opt for a trust because it allows you to determine how the recipient uses what you’ve left them (to fund their higher education, for example), while property bequeathed in a will is owned outright by the heir.
Contact a Board-certified California trusts and estates lawyer for a free consultation
K. Greg Peterson, a Professional Law Corporation provides comprehensive legal support to California clients on the creation and administration of trusts. To speak with Greg Peterson in a free consultation, please call 916-443-3010 or contact us online. Our office is in Sacramento.
