Explore The Role Of A Trust In Your LifePlan
A trust can be a powerful tool for distributing assets after your death and managing your affairs during your lifetime. Regular trust maintenance and review are crucial to ensure that your trust reflects your current wishes and circumstances.
At the Law Offices of Berge & Berge, we can help you create and maintain the right kind of trust to support you in life and support your loved ones after you’re gone. Our lead attorney, James Berge, brings over 25 years of estate law experience to the table. He holds credentials as a board-certified specialist in estate planning, trust and probate law* and a certification in public accounting (inactive). Our team takes a proactive approach to empower and inform clients about their options for building the life and legacy they envision. Based in San Jose, our lawyers handle trust maintenance for clients throughout the South Bay area.
Trust Creation And Maintenance In Your LifePlan
Creating and maintaining a trust can play a crucial role in your LifePlan – that is, the aspect of estate planning that supports you through life. The right kind of trust can provide crucial benefits during your life, including protecting your assets, securing your eligibility for Medi-Cal and reducing your tax burden.
Common types of trusts for life-planning purposes include:
- Revocable living trusts: This trust allows you to retain control over your assets during your lifetime and specify how they are distributed after your death. You can modify it to adapt to life’s changing circumstances.
- Special needs trusts: This trust can provide for a loved one with disabilities without jeopardizing their eligibility for public assistance.
- Irrevocable trusts: This is a valuable tool for tax planning, Medi-Cal eligibility and asset protection.
We can help you evaluate and create a tailored trust that reflects your goals by:
- Funding the trust with the appropriate assets
- Updating an existing revocable trust to reflect your current wishes and circumstances
- Creating a comprehensive estate plan and LifePlan
- Monitoring and managing trust assets effectively
- Ensuring that all beneficiary designations are current
Our goal is to honor your wishes while providing peace of mind about your future and legacy.
Common Questions About Asset Protection And Trusts
Information really is power. The more you know about how trusts can help with asset protection, the better you can consider their suitability for your needs. Here are the answers to some of the most common questions our attorneys hear:
How do trusts help in asset protection?
A properly structured irrevocable trust can protect assets by legally separating the ownership of the assets in the trust from the individual. That makes it difficult or impossible for creditors to press legal claims against those assets. In addition, the assets can be shielded against loss due to things like asset division in divorce, estate battles and wastefulness.
How does a trust help in securing Medi-Cal eligibility?
A Medicaid Asset Protection Trust (MAPT) can be used to remove assets from an individual’s “countable” resources, allowing them to qualify for Medi-Cal while preserving familial wealth for their beneficiaries. Because the rules surrounding MAPTs are complex, it is best to start talking with an attorney about this process as early as possible.
How does a trust help in reducing my tax burden?
Some trusts can reduce tax burdens by shifting income to beneficiaries in lower tax brackets, using estate tax exemptions, and avoiding probate, all of which can legally minimize an individual’s tax burden. Because there are many different approaches to this issue, it is essential to have the experienced guidance of an asset protection attorney when tax mitigation is your goal.
What is the difference between a revocable living trust and an irrevocable trust?
The basic difference is that a revocable living trust can be altered or even revoked by the grantor at any time during their lifetime, so it offers more flexibility but less asset protection than an irrevocable trust. By comparison, an irrevocable trust cannot be changed once it is established, but it offers better asset protection and tax benefits.
Learn More About Trust Maintenance As Part Of Your LifePlan
Let our LifePlan lawyers help you create a roadmap for your future and legacy. You can rely on us for all aspects of trust creation, maintenance and administration. Learn more by reaching out to our team online or calling 669-244-3546.
*Credentialed through the California Board of Legal Specialization