It is widely assumed that only the wealthy need to do estate planning. Part of our goal in our Torrance blog is to battle that erroneous assumption. Part of tearing down mistaken suppositions is spreading information about how basic elements of estate planning can help virtually everyone.
When the news media mentions trusts, it’s often in connection with an ultra-wealthy family. The Rockefellers, Waltons, Kennedys and Ford dynasties quickly come to mind. But there are several forms of trusts that can protect your family and shelter the assets you have spent a lifetime working for.
One example is a revocable living trust. It enables you to manage the trust and oversee its assets so that you can move funds in and out as you decide. One benefit that people at all income levels like about revocable trusts is that they enable the bypassing of probate.
And for those with an estate valued over $5.45 million dollars ($10.9 million for a married couple), a revocable trust can also protect your heirs from estate taxes.
An irrevocable trust is the other side of the trust coin: it can’t be unilaterally altered. When you put assets into the irrevocable trust, you give up rights to the assets. The upside is that this form of trust can also protect your estate from creditors and lawsuits, and safeguards your heirs from estate taxes.
A financial advice website recently examined those forms of trusts as well as several others that might be worth considering. You can also sit down with a Torrance estate planning attorney for a confidential discussion of the details of your situation, your priorities and your goals.
The Law Office of Matthew C. Yu, we can help you make use of the best legal tools available in your circumstances.