Trusts

CA Paralegal Services is dedicated to meeting your needs with a focus on Trusts

Trusts

A trust is a legal entity created to protect assets, with separate and distinct rights, similar to a person or corporation. The components of a trust are a party known as a trustor, who gives another party, the trustee, the right to hold title to and manage property or assets for the benefit of a third party, the beneficiary.
 
They are established to give legal protection for the assets of the trustor and ensure their wishes are distributed accordingly.

Types of Trusts

Living Trust or Testamentary Trust

The living trust is a written document in which an individual’s assets are provided as well-mannered for their lifetime.

Revocable Trust or Irrevocable Trust

A revocable trust can be terminated or changed by the trustor during the person’s lifetime. An irrevocable trust, can not be changed once established.

Funded Trust or Unfunded Trust

As it implies a “funded trust” has assets put into it by the trustor during their lifetime. The unfunded trust consists only of a trust agreement without funding.

Common Purposes For Trusts Our Paralegal Team Services:

Care

Trusts serve various purposes, accessible to more than just the affluent, despite potential costs. They can secure essential medical care for dependent children and adults with disabilities, offer flexibility for family members with varying needs, and provide stability by aligning shared objectives through legally binding agreements.

Estate Planning

The benefits of using trusts for estate planning can be difficult to put into words. Historically, a deceased person’s assets are passed to the spouse and then divided equally among children. For minor-aged children a trustee may manage assets until adulthood–their limited power allows them only so much control over what goes on behalf of anyone who might succeed them.

Basis

Assets in a revocable trust benefit from being taxed at the heir’s lower rate, which can result in substantial savings for future generations that inherit these assets. However, if you place them in an irrevocable trust they will be subject to carryover basis or their original cost price!

Privacy

Some trusts are created simply for privacy. Terms of a will can be public in some jurisdictions. Generally speaking, a will’s conditions are applied through a trust. Trusts can make intentions not publicly posted or known.