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Steve Bliss Law San Diego Estate Planning Attorney Trust Attorney

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Map:

Address: 3914 Murphy Canyon Rd a202, San Diego, CA 92123
Phone: (858) 278-2800

Qualities of a Trust

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A living trust permits someone to move legal ownership of properties to a trustee. The trustee is the individual who administers the trust. The property is deeded in the name of the trust, and the trustee is tasked with the obligation of administering the trust in the method that the grantor defined. Trusts permit people to connect more strings to a possession than by just leaving the property to someone in a will.

Cost

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One of the primary downsides to utilizing a trust is the expense necessary to develop it. This usually needs legal assistance. While some people may believe that they do not need a will if they have a trust, this is often not the case. If there are any assets left in the person’s name at the time of his or her death that are not part of the trust, this residue may be dealt with in accordance with state laws of intestacy if there is no will. For that reason, there is frequently a cost to establish a trust and to produce a pour-over will that transfers any remaining properties into the trust at the testator’s life time.

More Details

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Trusts are frequently far more complex to draft compared to wills. A will essentially deals with particular products to particular individuals. A trust might offer for disbursements at specific intervals or give the trustee discretion regarding when funds need to be drawn from the trust and provided to the recipient. The trustee might have to register for a trust examining account.

Absence of Tax Advantages

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Despite popular opinion, living trusts do not offer any specific tax advantages. This is since the settlor can withdraw the trust at any time and preserves control over the assets. Any income that is earned from trust possessions is reported on the settlor’s individual tax return.

Hassle.

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In some cases, utilizing a trust can trigger a trouble. Since the settlor is no longer the actual owner of the properties, if he or she makes agreements regarding them, they must be disclosed as trust properties. Banks and monetary organizations may impose extra hurdles and administrative treatments if a loan or other funding is sought based on trust properties used as security.