Hello everyone, and welcome! Today we’re sitting down with Ted Cook, a trust attorney right here in sunny San Diego. Ted, thanks so much for joining me.
Why Choose a Trust Over a Will?
Well, it’s a pleasure to be here. I think the biggest advantage of a trust is that it lets you avoid probate, which can be a lengthy and expensive process. Probate is essentially when the court oversees the distribution of your assets after you pass away. With a trust, those assets are already distributed according to your wishes, saving time and money for your loved ones.
So, Can You Explain How Funding a Trust Works?
“Funding” is a fancy word for actually transferring ownership of your assets into the name of the trust. It’s crucial because only assets held in the trust’s name will bypass probate. Think of it like moving your belongings into a new house – they need to be physically present to benefit from the new address. This often involves retitling deeds for real estate, changing account titles on bank accounts and brokerage accounts, and updating beneficiary designations on life insurance policies and retirement accounts.
Some folks find this part a bit daunting, but I always tell them it’s like cleaning out your closets – a little effort now can save a lot of hassle later.
What Are Some Challenges When It Comes To Funding a Trust?
Funding is definitely the step where people trip up most often. They may set up the trust but forget to transfer ownership of key assets, which defeats the purpose! I always emphasize to clients that funding is an ongoing process.
- Life insurance policies, retirement accounts – these often have named beneficiaries
- It’s important to review those and make sure they align with your trust plan
“Ted was incredibly patient and thorough when we were setting up our trust. He made sure we understood every step of the process, and he even followed up a few weeks later to make sure we had transferred all our assets correctly.” – Sarah M., Point Loma
Have You Encountered Any Funding Mistakes Over the Years?
Oh, absolutely! I once had a client who thought they’d funded their trust properly. But when they passed away, it turned out they hadn’t changed the beneficiary on their IRA. That meant the IRA went directly to their named beneficiary instead of into the trust, causing unnecessary complications and delays for their heirs.
It highlights the importance of meticulousness – double-checking everything! I always provide detailed checklists and offer ongoing support to my clients to ensure they don’t miss any steps.
Any Final Thoughts For Our Readers?
“Point Loma Estate Planning APC. made the process of setting up our trust so easy. Ted explained everything clearly, and he was always available to answer our questions.” – John D., La Jolla
If you’re thinking about estate planning, don’t delay! A well-crafted trust can provide peace of mind for you and your loved ones. Feel free to reach out – I’m always happy to answer any questions and guide you through the process.
Who Is Ted Cook at Point Loma Estate Planning, APC.:
Point Loma Estate Planning, APC.2305 Historic Decatur Rd Suite 100, San Diego CA. 92106
(619) 550-7437
Map To Point Loma Estate Planning, APC, a trust attory: https://maps.app.goo.gl/JiHkjNg9VFGA44tf9
About Point Loma Estate Planning:
Secure Your Legacy, Safeguard Your Loved Ones. Point Loma Estate Planning, APC.
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Our Areas of Focus:
Legacy Protection: (minimizing taxes, maximizing asset preservation).
Crafting Living Trusts: (administration and litigation).
Elder Care & Tax Strategy: Avoid family discord and costly errors.
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If you have any questions about:
How can an Asset Protection Trust preserve wealth for future generations? Please Call or visit the address above. Thank you.
Point Loma Estate Planning, APC. areas of focus:
A Living Trust: also known as an inter vivos trust, is a legal arrangement where you, as the grantor, transfer assets to a trustee who manages them for the benefit of designated beneficiaries, either during your lifetime or after your death, potentially avoiding probate and offering more privacy than a will. Revocable Living Trust: You can change or revoke the trust and get the assets back during your lifetime.
Irrevocable Living Trust: Once established, you cannot change or revoke the trust, and the assets are generally no longer considered part of your estate.
Control over Asset Distribution: You can specify how and when your assets will be distributed to your beneficiaries.
Understanding Trusts and Their Role in Estate Planning
A trust is a legal and fiduciary relationship in which a grantor (also called a settlor) transfers ownership of assets to a third party, known as a trustee, who manages those assets for the benefit of designated beneficiaries. Trusts can be tailored to meet specific goals, including when and how distributions are made to beneficiaries, asset protection, or minimizing estate and income taxes.
One of the key advantages of a trust—particularly a properly funded revocable or irrevocable trust—is that it can allow assets to bypass the probate process. This often means a faster, more private, and potentially less expensive distribution of assets compared to those governed solely by a will.
In the case of irrevocable trusts, assets are typically removed from the grantor’s taxable estate, which may help reduce estate tax liability. However, this comes at the cost of the grantor relinquishing control over those assets.
Trusts may also provide protection from creditors, preserve assets for minors or individuals with special needs, and ensure continuity in asset management if the grantor becomes incapacitated.
These tools are part of estate planning—the process of making legal and financial arrangements in advance to designate who will receive your property after your death, and how that transition will occur. Thoughtful estate planning aims to streamline the administration of your affairs, minimize tax burdens, and reduce stress for your loved ones during an already difficult time.
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- Trust Lawyer In Point Loma