We often don’t think about our future until it’s too late. And when it comes to estate planning, it is never too early to have a solid plan. While it may not be pleasant to think about, life is unpredictable.
When we near the end of our life, we need to make sure our assets are safe and our family is secure. Estate planning is not just for the wealthy and affluent, and people from all walks of life need to ensure they have a proper plan for when they are gone.
With the right team and strategy, estate planning will be painless and set your family up for success. Countless benefits will ensure that everything you’ve worked for doesn’t go to waste. Below are the top ten reasons you need an estate plan now.
#1 Reduce Estate Taxes
Putting together an estate plan can prevent a considerable chunk of your money from being taken by the government. In the situation of your passing, having to send a large percentage of funds to the government would be an unwanted burden on your family.
Whether it is estate taxes, capital gains taxes, or property taxes, there are ways to lower the amount of your money taken. Having a professional work with you to set up living trusts is one method of reducing taxes.
Plus, it will speed up the process for your heirs and help reduce confusion and stress over how to deal with all the taxes.
#2 Protect Assets
An estate plan is designed to help you organize your inventory of assets and be aware of all the steps needed to protect them both during your lifetime and after you are gone. In many cases, people often forget how easy it is to lose assets when they are not protected.
For example, if you happen to be involved in a lawsuit during your lifetime, a good estate plan could help you protect your assets.
#3 Protect Beneficiaries
One of the main reasons for estate planning is to make sure that your beneficiaries receive everything you want them to. An estate plan is beneficial if you are wealthy with a substantial estate or only have a few assets, including the family home to leave to your heirs.
Regardless of how much you have to leave your loved ones once you are gone, protecting your beneficiaries and ensuring they get everything you intended for them to have must be set up before your death.
Nobody knows your family better than you do. If you don’t have an estate plan or will, it will be up to the courts to decide who gets what. Whatever your reasoning, having everything set up beforehand is the best way to ensure that all your assets get distributed according to your wishes.
#4 Prevent Family Problems
The death of a loved one causes enough pain as it is, and adding family problems or fighting over assets on top of that causes unwanted stress at a difficult time in people’s life. These disputes can often pit family members against each other.
Some siblings may think they deserve more than another, a spouse may think they should be responsible for the entire estate, or a beneficiary might believe they should be in charge of dividing the estate amongst family.
Whatever the situation, stopping these issues from arising in the first place is a significant benefit of estate planning— having everything organized in advance will allow the process to run smoothly and prevent any avoidable problems from arising within your family.
#5 Protect Minors
Preparing for worst-case scenarios is an essential aspect of estate planning. Nobody anticipates it, but leaving children under 18 must be properly planned to ensure they are taken care of in the case of your unexpected death.
You know your children better than anyone, and you know what situations would be best for them. By naming guardians that will take care of your children, you will avoid the painful experience of a court battle to appoint custody.
These avoidable situations not only cause unneeded stress and pain but can often put your children in circumstances that are not ideal for their future. Setting up a trust for minors is a great way to ensure that they will get everything you
set aside for them when they are older.
All of this can be planned when setting up your estate plan.
#6 Plan for Charity
Today we see many of the world’s wealthiest people allocating portions of their fortune to charity. Regardless of the amount of your wealth, individuals that would like to leave an asset or specified amount of money to a charity need to plan this in advance.
Providing money to charities or non-profits is a noble cause, and the process can be made simple with an estate plan. Once you decide which charities you wish to donate to, they can easily be added, and your family won’t have to worry about handling any of these details.
By deciding in advance where the money will go and coming up with a plan, you may also be able to avoid losing too much of the money to taxes to make your generous gift even more substantial.
#7 Set Your Business Up For Success
You worked incredibly hard to get your business to where it is today. Don’t you want to ensure that it remains successful when you’re gone? Unfortunately, that company you spent your life building could be gone without a succession plan in the blink of an eye.
An estate plan will ensure that you can decide who takes over your company when you’re gone. Making certain the right person is put in charge could be the difference between an ongoing successful legacy and your business suffering from poor management.
Creating an estate plan can ensure that your business is put in the hands you think are best to carry on your legacy. This may be one individual or a team of professionals that will have your best interest at heart.
#8 Make End-of-Life Decisions
Nobody wants the task of deciding what happens to a family member when they are incapacitated. An estate plan is not only for money and property, but it can also be used to designate a power of attorney when you cannot make decisions yourself.
You can also provide in specific terms your end-of-life decisions. Whether it is deciding treatment options for certain health problems or choosing a loved one that can make those decisions for you, this can prevent hard decisions from being thrust upon someone unexpectedly.
#9 Avoid Probate
Everyone has heard the horror stories of people going through probate. The process of validating your will and placing your assets where you want them can be a long and painful process.
During probate, various people can challenge your will, which may even prevent your last wishes from happening. This is a family’s worst nightmare and can be eliminated when the proper steps are in place at the time of your death.
Avoiding probate is one of the most important reasons to talk to a professional estate planner. Having everything set up accordingly can allow your family and loved ones to avoid the probate process altogether. Read more about probate here.
#10 Peace of Mind
At the end of the day, your peace of mind is the most critical aspect of estate planning. Going through life worrying about what will happen when you’re gone could easily add unneeded stress to your last years.
Knowing upfront what will happen to your assets will allow you to relax and enjoy your life, and you’ll have the comfort of knowing that your estate plan will take care of your loved ones long after you are gone. These are all great reasons you need an estate plan now.
Contact Us Today
The Filippi Law Firm, P.C. is a highly rated estate planning law firm in Rocklin, California. Our team is dedicated to guiding you through the process and bringing peace of mind to your family. When you hire us, you are more than a client, you are part of our family. Get in touch today to see how we can help you create an estate plan that matches your needs.
Filippi Law Firm, P.C., provides legal services in estate planning, probate, trust administration, trust litigation, and personal bankruptcy in the greater Sacramento area, with a focus in Rocklin, Roseville, Lincoln, and Granite Bay. Give us a call at (916) 333-7910 or fill out the contact form to get in touch with our office. Consultations are free, and they can be done over the phone, via Zoom, or in person at our office in Rocklin. Prepare for your future and work with the best estate planning attorneys today.
Suppose you want peace of mind when something happens to you, whether you are incapable of making important decisions or you’ve passed on. In that case, getting your trust funded is imperative to your beneficiaries.
This simple process will take more weight off your shoulders and allow you to enjoy your time with your loved ones without worrying about what will happen after you are gone. While there may be other options to consider, funding your trust is both easy and safe.
However, the procedure for funding your trust or doing otherwise differs slightly in different states. You’ll need to partner with an estate lawyer who knows and understands the laws of California that are designed to protect your estate.
More so, if you live in Rocklin, you stand to benefit a lot from its simplicity. Keep reading to find out how this guide can show you why you should not delay funding your trust and provides a straightforward procedure for getting it done.
Why Should You Fund Your Trust Now?
Funding your trust now can save you and your loved ones many headaches down the road. Trusts are designed to make things simple after you’re gone, allowing your family members to move on with their lives without any legal battles over your estate.
It also allows you to decide upfront how your assets are distributed. You can specify how your estate will be split and when it can be accessed, and by whom. Depending on your planning goals, you can also dictate how much goes to charities or can be used as a tax reduction.
We have identified some fundamental reasons why you should fund your trust right away. Take a look below and see if these resonate with you.
Security of Trusts
While this may seem unimportant for some, many people care about what happens when they are gone. For example, in California, people feel more secure with a trust in place. The primary reason stems from making sure their loved ones are taken care of without additional stress.
In the case of uncertainties, you can take advantage of the revocable living trust, which gives you more freedom. You are in control at all times and can choose to make adjustments whenever necessary.
However, whatever position you find yourself in, you must give the trust adequate authority to have fewer difficulties in the future. When the time comes and you’ve passed on, you’ll want to be certain that everything is aligned with how you wanted your estate to be handled.
Smoother Transitions
Unfortunately, some individuals who have successfully created their wills, leave themselves or their beneficiaries at the court’s mercy to make the final decision because a trust was not in place.
More often than not, the particulars of your properties, bank accounts, deeds, investments, etc., would generally have your siblings or spouse as beneficiaries. In some cases, this could still be your parents or former spouse. However, for the proper execution of your will, we advise you to name a trust.
Imagine getting involved in an accident or losing your life when your child is about to attend college. You would not want them to wait for the probate court to decide on your provision for college before they could proceed with school.
Avoiding Doubts
Imagine the traditional practice when there is no named trust. Your estate will have to be taken over by the court. Then it hands it over to specific individuals that it considers lawfully capable of distributing or managing it.
These could be family members or older relatives that you no longer have contact with. This can also happen in the absence of a will as well. However, if you have a will in place and not a trust, the courts will also be involved with the distributions of your estate.
When any of these scenarios happen, the owner’s original intent may not be appropriately transmitted or executed. In some cases, it could throw the family into strings of lawsuits and other ventures that may not eventually yield what you have earlier intended.
Hence, you can have a trust to carry out your wishes after you are gone.
Taking Control
While we understand that some matters (such as when you pass or become incapacitated) are out of your power to decide, we know that others lie within it. For example, the choice to draw up your will lies within your control.
However, a will can still be subject to a probate court. This is why having a trust is so important. You can easily control how the proceedings will be executed by spelling out everything that would happen, how they would happen, and who manages them.
That is one thing that funding a trust would do for you. To properly understand this and any other legal actions to safeguard the life of your dependents, it would be best to contact an experienced estate attorney, especially one that fully understands what is obtainable around your local area.
Suppose you live in California or the Rocklin area; Filippi Law can help you set up everything you need to protect your estate and your loved ones. Their team of experts can provide you with the customized help you deserve.
How to Fund Your Trust
Funding your trust is essential for your beneficiaries. The sooner you do this, the less you’ll need to worry about down the road. Here are a few steps that need to happen for funding your trust:
Transfer all titled personal properties and financial accounts
A vital step to funding your trust is deliberately changing your properties’ titles, bank accounts, and other legal accounts. In the case of real estate properties, you may be required to file a quitclaim deed. These documents can also be subject to the status of the property.
For example, if you have a mortgage on your home or any other property, you may be required to seek an appropriate mandate from the lender before you can proceed to include it in your trust.
In the event of a bank account, you should contact your account manager on the actual proceedings. You can also consult with your attorney to get a comprehensive guide on how to approach individual cases.
Transfer all accounts receivables
On the advice of your attorney, you can file an assignment of rights to transfer all benefits and loan repayments to your trust. This implies that the receipts from loans you may have given out would be paid into the trust.
This would save time and additional paperwork when transferring them to the trust once you pass and can no longer receive them.
Make your trust a beneficiary
As a vital step, you need to actively change your receipts to your trust, like your retirement or medical savings accounts. This would automatically transfer these incomes to your trust.
Moreover, this step is convenient. It ensures that your well-being, as you age, can be managed appropriately according to your wishes.
What Happens While You Are Still Alive?
With a living revocable trust, you can effectively manage all your assets while you are still alive. You can maintain control over all your assets and make decisions based on your current situation. The assigned trustee only takes full force at the time of your death.
Funding your trust sooner rather than later can help you protect your estate. Since there are no guarantees when somebody might expire, it’s always better to be prepared and not have to worry about what will happen when you are gone.
Contact the Jim Filippi Law Team today to find out how they can help you set up your estate and the steps for funding your estate.
Filippi Law Firm, P.C., provides legal services in estate planning, probate, trust administration, trust litigation, and personal bankruptcy in the greater Sacramento area, with a focus in Rocklin, Roseville, Lincoln, and Granite Bay. Give us a call at (916) 333-7910 or fill out the contact form to get in touch with our office. Consultations are free, and they can be done over the phone, via Zoom, or in person at our office in Rocklin. Prepare for your future and work with the best estate planning attorneys today.
Statistics show that 68% of Americans don’t have a will in place, putting their affairs at risk of probate and lots of hassles for their heirs. You’ve already done the hard work and created an estate plan, and you might be feeling like you’re already ahead of the game, right?
Well, it is an excellent strategy to have your estate plan created already. But unfortunately, it’s not a one-shot deal. Too often, people who have set up their estate finish it and forget about it. However, it’s just one of the steps needed for planning your estate.
If you live in Rocklin, California, it’s time to consider this: lots can change in life from when you make your estate plan. Between life events and outdated legal documents, there’s a whole host of reasons you should probably revisit your estate planning attorney to update your estate plan.
Read on to learn more about the importance of having your estate plan reviewed and how often you should do this.
Life Events That Require Reviewing Your Estate Plan
Many people set up their estate plans considering their current financial picture. They want to protect their assets and their beneficiaries after they’re gone. And while this isn’t wrong at all, many life events require you to revisit and update your estate plan.
Let’s take a closer look at some of those events:
- Birth of a child or grandchild
- Adoption of a child
- Educational funding for children
- Children or grandchildren reaching an adult age
- Death of a guardian named for minor children
- Change in the guardianship for minor children
- Dependents, if you’re now caring for an adult parent
- Change in financial goals
- Marriage
- Divorce
- Serious illness
- Disability of you or your spouse
- Life insurance changes
- Buying a home, vacation home, or other large assets
- Changes in the value of an asset
- Inheritance or gifts of an asset
- Changes in laws from federal or state governments for investments or taxes
- Death of a family member
- Death or change in situation for a trustee or executor
- Career changes
Often people get so busy in life; they forget that any of these reasons might mean changes are necessary to their estate. Even if you wanted a change, the old estate would have to be honored if you didn’t make the changes official.
What Needs to be Reviewed in Estate Plans?
If you experience any of these life events, you’ll want to revisit your estate plan. But what needs to be considered when you come back to the estate plan? Let’s take a closer look at the parts of your estate that might need revisions.
Beneficiary Designations
One of the first things to consider in your estate when reviewing it is the beneficiary designations. These are often impacted by the life events listed in the previous section.
You likely have beneficiary designations in your insurance policies. You also probably have them with your investments.
It’s important to note that it’s not your will that establishes what happens to the asset with many investments. Instead, what happens with the asset is controlled by the actual beneficiary designation. This would include retirement accounts, life insurance policies, and IRAs.
Assets and Their Titles
Often in personal life and even in business, you have joint accounts. This is especially true for couples or business partners who share joint checking or savings accounts.
If one person listed on a joint account passes, the surviving member takes ownership of the account in question. If this doesn’t match the information listed in the estate plan, it can be a real problem for the estate and beneficiaries.
You also want to keep an updated list of titled accounts and beneficiaries. This makes it easier to make any updates due to life events to your estate plan.
Life Insurance
At the simplest level, your life insurance policies will probably change over time. Some may already be set up to change in value or time. You might wish to change beneficiaries in these policies as life events happen.
In a more complicated scenario, some people who might use life insurance policies, such as a whole life policy, as part of their investments.
There can be tax exemptions that also arise over time with age, and these need to be factored into how the estate handles policies.
Trusts
There are a whole host of different trusts that you can use as part of your estate plan. The different types meet various goals for estate planning.
Many people use a trust as part of their estate for financial purposes. It helps to protect their assets. Laws related to trusts and taxes change frequently. You would want your tax attorney or estate planner to make sure you have made any necessary adjustments as the laws change.
Times When You Should Consider an Estate Plan Review
There are also certain times when you should consider revisiting your estate plan to make sure it is up to date.
Financial institutions will expect some documents to be updated regularly. For example, power of attorney paperwork needs to be checked after several years. If you go too long, it’s possible financial institutions will decline to accept them.
Another reason to revisit your plan is related to state and federal laws. These laws can change over time. It would be best if you had your estate plan up to date with any new provisions.
If people who are part of the estate plan don’t follow or agree with the arrangement in place, you may also want to make changes.
How Often Should You Review Your Estate Plan?
You should revisit your plan whenever those life events happen that would require it. You don’t want to ignore them, assuming it isn’t that important. You never know when something could happen to you.
If you don’t have life events, you should still revisit your estate plan every few years. Since laws change so frequently, you want your estate plan to reflect them.
Rocklin, California Estate Planning to Make Sure You’re Covered
If you live in Rocklin, California, and need help with your estate plan, we can help. You want to make sure your estate and your beneficiaries are protected by keeping it up to date.
Filippi Law Firm, P.C., provides legal services in estate planning, probate, trust administration, trust litigation, and personal bankruptcy in the greater Sacramento area, with a focus in Rocklin, Roseville, Lincoln, and Granite Bay. Give us a call at (916) 333-7910 or fill out the contact form to get in touch with our office. Consultations are free, and they can be done over the phone, via Zoom, or in person at our office in Rocklin. Prepare for your future and work with the best estate planning attorneys today.
An estate plan is a comprehensive plan you have created showing how you want all of your assets handled after death or when you’re incapacitated. Estate planning ensures that all of your beneficiaries receive your possessions and other assets in a way that minimizes income and estate taxes.
When you don’t have your own estate plan, the government will do it for you — and it may not always be in your favor. For example, if you become disabled without granting a power of attorney to someone, the court will appoint a conservator to access your assets. Depending on your state, this can be intrusive and even burdensome.
According to the law, if you haven’t distributed all of your assets before death, everything you own will be distributed to your heirs. How much an individual receives will be based solely on their relationship with you. If you want to have complete control over all your assets and possessions, you need to create an estate plan.
What are the basic steps you need to take to have successful estate planning?
1. Have an Inventory of All of Your Assets
The first step to estate planning is to have a list of all of your assets. Ensure that you take note of both your tangible and intangible belongings. It’s essential to take your time and provide as much detail as possible about everything you own.
Tangible assets can include real estate such as your main home, vacation houses, apartments, or land. Vehicles, collectibles such as antiques, and other personal possessions are also considered tangible assets.
Ensure that you provide details such as the location of the real estate properties that you own or the values of antiques or collectibles that you have. Look around closely as there might be other possessions you may have missed. Remember, an estate is everything that you own, big or small.
Intangible assets include certificates of deposits, stocks, mutual funds, savings, and checking accounts. Other intangible assets that should be considered as well are retirement plans and life insurance policies.
Don’t forget to also provide monetary values for both the tangible and the intangible assets. It’s unnecessary to have an accurate valuation; you can also value these possessions in terms of how your beneficiaries or heirs will appreciate them.
2. Consider Your Family’s Needs
As soon as you have everything evaluated and listed, it’s time to think about how you would like your assets distributed. You will want to consider how much protection you want to provide your family after death or when you’re incapacitated.
Your life insurance becomes increasingly important, especially when you have several children or a child with special needs. Ensure that you have enough life insurance in place for them when you are deceased. Also, make sure that you name a guardian for your children to avoid court fights that could potentially harm your assets.
Most importantly, it would help if you wrote down all of your wishes for your children. Don’t just assume that someone will volunteer or take care of your children the way you want them to. Write everything in your will, from your smallest to your biggest wishes. A detailed will can avoid costly court issues in the future.
3. Review Your Beneficiaries
If you have insurance and retirement accounts, make sure that you review all of the listed beneficiaries. There are times when you forget who you named as beneficiaries, especially when you bought your policies or accounts many years ago. Review all of your documents as much as possible. Make changes as necessary.
Also, never leave a beneficiary section blank. Otherwise, it will be evenly distributed to your heirs, according to the laws in your state. It’s also imperative that you name backup beneficiaries just in case if the primary person dies before you do.
4. Know Your State’s Estate Tax Laws
One of the most critical steps to creating a successful estate plan is to educate yourself on your state’s estate laws to minimize inheritance, estate, income, and other taxes involved.
Some states will have inheritance and estate taxes. Your heirs will have to pay taxes for assets that they will inherit from you for inheritance taxes. How much taxes they will need to pay varies by state. They may also have to report inheritance money to the IRS, especially when it can produce income such as rent or dividends.
You can reduce estate taxes by spending your assets, giving them away, or shielding them in a trust.
5. Make Changes to Your Estate Plan
Keep in mind that your estate plan is not permanent. You can revisit or reevaluate your estate plan as you see fit.
You can revisit your estate plan when your life circumstances change, such as having another child or going through a divorce.
A complete estate plan also includes essential directives such as a durable financial power of attorney, a limited power of attorney, a living will, and a trust.
Hire an Estate Planning Attorney in Rocklin, California
With an attorney, you can be confident knowing they will draft all your estate planning documents per your state’s current law. You will have peace of mind knowing that the legal papers created will reflect all your goals for your legacy.
Most importantly, your attorney is your one trusted resource if you or your beneficiaries have questions about your estate. Remember, creating an estate involves working with taxes, and an attorney is highly adept at working with tax laws.
You can minimize taxes, and your beneficiaries will be genuinely protected when you work with the right Rocklin, California attorney in creating your estate plan.
If you need help, don’t hesitate to get in touch with Filippi Law Firm. We take pride in providing only exceptional estate planning services to all of our clients. Our dedicated legal team can handle all your personal affairs when it comes to anything estate-related.
We provide trusted legal advice that you can always rely on, no matter how simple or complex. Contact us today for assistance.
Filippi Law Firm, P.C., provides legal services in estate planning, probate, trust administration, trust litigation, and personal bankruptcy in the greater Sacramento area, with a focus in Rocklin, Roseville, Lincoln, and Granite Bay. Give us a call at (916) 333-7910 or fill out the contact form to get in touch with our office. Consultations are free, and they can be done over the phone, via Zoom, or in person at our office in Rocklin. Prepare for your future and work with the best estate planning attorneys today.
What are the Steps to Being a Conservator?
Did you know that there are around 1.3 million active cases of guardianship and conservatorship in the US? While it may often hit the headlines in the mainstream media, conservatorship does serve an essential purpose. But do you know the responsibilities of a conservator?
The process is not as clear-cut as it may sound. Read on as we discuss what happens when you are appointed a conservator.
What Is a Conservator?
A conservator is someone appointed to be a protector of a person. If the person is injured or unable to care for themselves, the conservator decides what is best for their welfare and financials, such as their pensions, income, taxes, and estate. Conservatorship is the actual court case to determine this, and it may be appointed to an individual or company.
The name may differ depending upon what state the case is in and some of the laws surrounding it. However, in Rocklin, California, they take the name of conservators. It differs from guardianship, which deals with the legal authority to provide care to minors.
Pros of a Conservatorship
Conservators are always under regular court supervision. This means that they cannot mismanage the conservatee’s finances or use the position for personal gain. This is often done through the provision of regular, detailed reports.
Major decisions also require court approval. This could include the selling of any real estate, assets or making significant decisions regarding healthcare.
To further safeguard the conservatee’s estate, the conservator must post a bond. The premiums come from the assets managed. This protects them from misuse.
How Does a Court Decide Between a Guardian or Conservator?
Each case is reviewed individually and determined based on the factors. However, much of it comes down to how the person becomes incapacitated. Generally, if a person has financial assets but is incapable of managing them, a conservator is required.
For example, if a person with Alzheimer’s needs help, they may go to court. If that individual had multiple income streams and assets, a conservator is a sound choice.
Types of Conservatorship
When you are in the process of being appointed a conservator, it helps to know what type you are going to be. There are several types, each with slightly different rules and regulations. Below are examples of each kind.
General
General is the most common type of conservatorship, typically used when adults can no longer handle their affairs. This may be through an injury, illness, or accident. It covers finance and personal affairs.
Limited
Limited is similar to general, though it is specifically concerned with people who have developmental disabilities. This means that they may be able to manage finances in the future, though not at the current moment.
Probate
Probate is concerned specifically with the will and estate planning of a person. Probate conservatorship can be granted over the individual or the estate.
When granted the conservatorship of the estate, the person can make financial decisions on what they will leave behind and to whom for the conservatee. When they are probate conservators of the individual, they can use their granted powers to protect them if they cannot do so themselves.
Financial
Financial is like a general conservatorship but explicitly handles the financial aspects of the person. It is usually appointed when an older adult can no longer manage their finances and is at risk of facing elderly abuse.
Mental Health
Often known as the Lanterman-Petris-Short Act (LPS), this conservatorship is specific to the state of California. It protects people who have temporary bouts of mental health problems that render them unable to manage affairs, including financials. The LPS Act allows them to regain control if and when the time is right.
The appointments start at 30 days but can then be extended in yearly periods. While this is specific to California, other states may have similar acts under different names.
What Happens In the Court Process?
Conservatorship proceedings begin with evidence regarding the conservatee’s mental state and ability to govern themselves. The judge will then decide if the person needs a conservator. Primarily, this will be a spouse or a mature adult child.
If multiple people put themselves forward for the job, the judge will follow state laws regarding the most suitable candidate. While it gives preferences to spouses and children, the judge may appoint someone else if he believes the candidates will not act in the person’s best interest.
However, they are given preference as they are closer to the individual and often have a better idea of what they want. In addition, one or more people may object to the conservator’s appointment, including family members, friends, and even the proposed conservator themselves. To do this, they must file papers with the court and attend a legal hearing.
Ending a Conservatorship
The court will decide when the conservatorship ends and issue an order to complete it legally. It could happen when an individual is deemed capable of regaining control of their finances or when the assets are depleted or no longer in need of management.
It can also occur due to the individual being deceased. In some circumstances, the conservator may no longer be able to manage the duties, in which case the conservatorship passes to someone else.
Taking on Responsibility
In summary, if you are appointed as a conservator, it will be for a reason. A judge and others will have deemed you as the individual most likely to act in the other person’s best interest. Keep this in mind if you feel overwhelmed by the prospect.
If you need help or guidance with estate planning in the Rocklin, California area, Filippi Law can answer any questions you may have. We have legal services ranging from managing trusts to creating personalized wills. Contact us today to discuss your needs and let us help you safeguard your assets starting right now.
Filippi Law Firm, P.C., provides legal services in estate planning, probate, trust administration, trust litigation, and personal bankruptcy in the greater Sacramento area, with a focus in Rocklin, Roseville, Lincoln, and Granite Bay. Give us a call at (916) 333-7910 or fill out the contact form to get in touch with our office. Consultations are free, and they can be done over the phone, via Zoom, or in person at our office in Rocklin. Prepare for your future and work with the best estate planning attorneys today.
What Is A Beneficiary Of A Living Trust?
The terms for each role in a living trust oftentimes get confused with each other. Sometimes people mistakenly believe that a trustee is a beneficiary and vice versa. While this confusion is common, it can cause some misunderstandings amongst family members. Through this article, we plan to dispel some of this confusion.
For a living trust to be legally valid, there are a few roles that must be established in the living trust agreement. First is the trustor, the person, or the people who created the living trust. Then there is the trustee, who manages the living trust (see https://filippilaw.com/what-is-a-trustee). And finally, there is the beneficiary who benefits from the living trust’s assets.
A beneficiary can be an income beneficiary, a principal beneficiary, or both. An income beneficiary will receive as regular distributions from the trust, the income the assets held in the trust produce. This could be anything from stock dividends to rental income. A principal beneficiary will receive the assets actually held in the trust, whether that is cash, a house, or your rare coin collection. The goals you have for your living trust will dictate which type of beneficiary you will designate in your trust agreement.
However, most living trusts utilize both types of beneficiaries to achieve their goals. Trust laws bring with them a tremendous amount of flexibility so that the trustor has the ability to customize their living trust the way they want and not be locked down to a preconceived format created by lawmakers.
How this often works with a typical living trust is when the goal of the trust is to avoid probate and distribute assets to children. For example, say one child is an adult at your death, and the other is still a minor. The living trust could split your assets into two shares, one for each of the children. Then the living trust would distribute the share for the adult child outright without any strings attached. This adult child would be a principal beneficiary. And finally, the trust would hold the share for the minor child in a separate trust for their benefit and care while they are a minor. The trust would distribute whatever amount of income and principal is necessary for their care. This minor child would be both a principal and an income beneficiary depending on the assets they would require for their needs.
This is just a basic example of how a person can benefit from your living trust, but it can be far more complex depending on what you would like to happen with your assets when you pass. Your beneficiary could even be a charity or a scholarship fund that you want to benefit for years to come. The possibilities are truly endless. However, there are many considerations to think of when customizing your plan, ranging from your family, to tax consequences.
We tell our clients to let their imaginations determine how they want their estate to be divided. The easiest way to conceptualize this is to think of the perfect world where no matter what, you have the say on what happens. From there, we are able to customize your plan to accomplish these goals and ensure they have the best chance of actually happening. This is why partnering with an estate planning attorney who truly listens to you and understands the essence of what you want is absolutely critical.
Call us today and we can schedule your first step on your journey to getting your affairs in order!
Filippi Law Firm, P.C., provides legal services in estate planning, probate, trust administration, trust litigation, and personal bankruptcy in the greater Sacramento area, with a focus in Rocklin, Roseville, Lincoln, and Granite Bay. Give us a call at (916) 333-7910 or fill out the contact form to get in touch with our office. Consultations are free, and they can be done over the phone, via Zoom, or in person at our office in Rocklin. Prepare for your future and work with the best estate planning attorneys today.
