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Probate & Business – Estate Planning – Trust Litigation – Inheritance Disputes – Product Liability – Trust Administration – Tax Planning

Creating a trust involves complex legal procedures and requirements. For this reason, hiring an attorney specializing in trusts and estate planning is crucial to ensure the trust is structured correctly, appropriately drafted, and executed following applicable regulations and laws. Are you looking for a trust attorney Laguna Beach, CA, residents rely on? Our expert attorneys have the knowledge and skill to assist you best.

What Is a Trust?

A trust is a legal arrangement where a person, called the grantor or trustor, transfers assets such as money or property to another party, called the trustee. The trustee manages these assets on behalf of the beneficiaries. The trust document outlines the terms and conditions under which the assets are to be managed, distributed, and used for the benefit of the beneficiaries.

Property Taxes & Trusts

We have seen an increasing number of situations where a new trustee takes over and finds out that a property transfer might have previously occurred. This property transfer would have resulted in a change of ownership. Therefore, the property would need to be reassessed for California property tax purposes. A trustee should act a little bit like a buyer of a property and do some due diligence. They should go as far as asking about the history of the trust’s ownership of the property and look into the ownership of trust-owned entities. If there is clear evidence that the property should undergo reassessment, then the trustee must step forward and report the change in ownership.

Benefits of a Trust

Trusts serve various purposes in the estate planning process. For example, trusts provide asset protection, charitable giving, and financial support to individuals such as minors. They offer a flexible and efficient way to manage and distribute assets. Moreover, trusts come with advantages, such as potential tax benefits, privacy, and continuity of asset management after the trustor passes on.

trust attorney Laguna beach ca

Common Types of Trusts

  • Revocable Living Trust
  • Irrevocable Trust
  • Testamentary Trust
  • Charitable Trust
  • Special Needs Trust
  • Grantor Retained Annuity Trust (GRAT)
  • Life Insurance Trust
  • Asset Protection Trust

Grantor Retained Annuity Trust (GRAT)

A grantor retained annuity trust is an irrevocable trust that allows the grantor to transfer assets to the trust while retaining the right to receive an annuity stream over the trust’s term. The value of the assets transferred to the beneficiaries is determined by subtracting the current value of the retained annuity payments from the initial value in the trust. This kind of trust minimizes estate and gift taxes on the transfer of assets to the beneficiaries. Additionally, if the assets in the GRAT experience appreciation during the annuity term, the excess growth can be passed on to the beneficiaries with minimal tax consequences.

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    SOUTHERN CALIFORNIA ATTORNEYS

    We are an industry-leading estate, trust, and probate attorney serving clients in Irvine, CA and surrounding communities within Orange County, including Irvine and Laguna Beach.

    We are an industry-leading estate, trust, and probate attorney serving clients within Orange County, including Dana Point and Newport Beach.