After working for years, probably decades to accumulate your assets, you want to be confident your assets will be managed according to your preferences in the event of your death.
You can ensure your assets will be handled and divided properly by setting up a trust or perhaps a will. Doing so is should be done with an experienced trust and estate lawyer. At the Law Offices of Andrew Cohen, an experienced Encino wills and trust planning attorney is prepared to work closely with you to establish a plan that satisfies your preferences.
The Importance of Creating and Updating a Will
You likely have some understanding of how a will functions. A will can help to establish how your assets are to be divided after your death. The importance of creating a will and updating it when necessary cannot be overstated. If you pass away without a will, courts or other parties will be responsible for making decisions about what happens to your assets. There is a chance the decisions they make will not correspond with your wishes.
The prospect of creating a will can be intimidating. Luckily, you don’t need to create a will on your own. Nor should you. To ensure your will is thorough and official, it’s best to enlist the help of an attorney who specializes in will planning. However, just a Will is probably not enough to handle your assets in the future
What You Need to Know About Trusts
While many of us are somewhat familiar with Wills, even just conceptually, fewer people are familiar with Trusts and their purposes. Essentially, when someone establishes a trust, they grant a trustee the right and responsibility to manage their assets according to their wishes. The primary goal of a trust is to ensure the trustee manages and holds assets in a manner that serves the best interests of third-party beneficiaries.
Trusts come in a variety of forms. Some common examples:
- Living trusts: A living trust, also known as a revocable trust, is one that allows the person who creates the trust to change or amend it over the course of their lifetime. They may serve as trustee while they are alive, naming an individual or party who will later assume the role of trustee if they pass away.
- Irrevocable trusts: An irrevocable trust is much more restrictive and requires giving up certain rights in assets in order to receive the legal benefits that such a trust may provide. Changes are more difficult to make, sometimes requiring the authorization of the beneficiaries, sometimes no changes can be made without court approval.
- Special needs trusts: A special needs trust may serve to ensure a trustee is responsible for managing the assets of an individual who is disabled.
- Spendthrift trust: If a beneficiary is prone to managing their assets irresponsibly, a spendthrift trust allows a trustee to manage the property in the trust. This prevents a beneficiary from mishandling their interest in assets they inherit or are given. It also ensures assets in a trust are not accessible by the beneficiary’s creditors.
Determining whether making a trust is ideal for your goals and deciding what type of trust you should establish can be challenging without professional guidance. Consult with the experts at an Encino wills and trust planning law firm to learn more about these topics.
Contact an Encino Wills and Trust Planning Attorney Today
Setting up a proper will or trust can have a major impact on your estate’s future. At the Law Offices of Andrew Cohen, you’ll find an Encino wills and trust planning lawyer who can assist you with this otherwise complex process. Call our office at 661-481-0100 or contact us online today to schedule your consultation.
