Creating Tailored Trust Solutions for Individuals and Families Across Southern California

Everyone wants their loved ones to be cared for after they’re gone. Whether it’s valuable keepsakes you wish to give to treasured friends, college tuition for your grandchildren, or something else, inheritance is a major concern for many people. In some instances, a will may be sufficient to ensure that specific assets pass to the intended recipients. However, in other circumstances, a will may not be sufficient.

When someone dies in California, their estate must go through a legal process called probate. Depending on certain circumstances, probate can take a considerable amount of time. During this time, your intended heirs may not be able to access or receive their inheritance. If the deceased owed money to particular creditors, certain assets may be liquidated to pay those debts. This means your intended heirs may not receive their inheritance at all. This is where trusts come in. Trusts are legal arrangements that allow you to pass certain assets to the intended recipients without worrying about probate. If you or a loved one wishes to ensure your estate passes to your intended heirs as quickly and easily as possible, consult an experienced Kern County trust attorney.

What is Probate?

Probate is a legal procedure meant to ensure that a person’s estate is settled according to the law. Probate is meant to protect all parties related to an estate, including the deceased themselves, anyone who may still be owed money by the deceased, and the deceased’s intended heirs. If it is determined during the probate process that the deceased owed money to certain creditors, it can result in assets being sold or liquidated to pay those debts. If this happens, some or all of your estate may not be able to go to your intended heirs. This is where a trust comes in. Trusts provide a legal avenue to avoid having certain key assets tied up or lost during probate.

What is a Trust?

A trust is a legal entity that holds assets for intended future recipients. Establishing a trust is similar to establishing a business. When you create a trust, you become what is known as a guarantor. The guarantor transfers their own assets into ownership of the trust. When this happens, the guarantor is no longer considered the legal owner. The trust now holds ownership. The guarantor next assigns a trustee to manage the legal entity based on instructions they have provided to them.

Because assets in a trust are no longer the legal property of the guarantor, when the guarantor passes away, these assets can avoid the probate process. The trustee can simply follow your instructions and distribute the assets in the trust accordingly.This is a simplified explanation of trusts. There are multiple types of trusts available in California.

Some examples of trusts available include, but are not necessarily limited to:

• Revocable Living Trusts
• Irrevocable Trusts
• Asset Protection Trusts
• Special Needs Trusts

Not every type of trust may be right for every individual. Our compassionate and knowledgeable trust attorney can review your financial circumstances and help determine what type of trust may be right for you.

What is a Revocable Living Trust?

A revocable living trust is one of the most basic types of trusts. As the name indicates, it allows you to make changes to the trust while you are alive. These changes may include adding or removing assets, or changing designated beneficiaries. Revocable living trusts are best for individuals who want the peace of mind that allows them to make changes to an important legal arrangement. 

Because they are so easily changed, revocable trusts offer the least legal and financial protection. Our trust attorney can review your needs and concerns and help determine if a revocable trust offers the necessary security for you and your family.

What is an Irrevocable Trust?

An irrevocable trust is a trust that does not permit changes once it has been established. Although some people may worry about the “finality” of this decision, revocable trusts offer multiple legal protections that are unavailable under other circumstances. For example, assets in an irrevocable trust are not counted by the IRS when determining the value of your estate. This means that if you file for bankruptcy or go into debt, assets in an irrevocable trust remain protected.

What is an Asset Protection Trust?

An asset protection trust is a type of trust established for the primary purpose of protecting your assets from creditors. Similar to an irrevocable trust, an asset protection trust shields assets from creditors. An asset protection trust may additionally be used to strategically lower the value of your estate. This is a legal strategy that may have later benefits, such as during Medicaid Planning. Asset protection trusts can be time-consuming and expensive to establish. However, they are vital tools for individuals with large estates or vulnerable assets they wish to protect. If you believe you or your loved ones’ assets may be threatened by bankruptcy or creditors, an asset protection trust is a valuable way to protect what’s yours.

What is a Special Needs Trust?

A special needs trust is a unique type of trust established to care for individuals who may not necessarily be able to take care of themselves. In many instances, this means an intellectually impaired or disabled adult. If you have a family member who may not be able to care for themselves after you are gone, a special needs trust can ensure they continue to receive care after your passing. A special needs trust can be used to disburse money and other financial resources to the intended recipient. Often, the trustee of a special needs trust collaborates with trusted doctors, family members, and other administrators to ensure the individual receives proper care and that the trust assets are being managed effectively.

What Should I Do if I Need to Establish a Trust?

Trusts are a relatively simple yet effective way to protect your assets, yourself, and your loved ones. While many people can benefit from trusts, most individuals do not know how to establish them or which trusts are right for them. That’s where the Law Offices of Robert H. Brumfield, P.C. come in.

Robert Brumfield approaches the law from a place of compassion, respect, and a desire to help others. He knows that trusts are an often-overlooked yet invaluable method of protecting yourself and your loved ones. He wants everyone who can benefit from a trust to be able to establish one easily and efficiently.

Robert Brumfield and his compassionate staff know that peace of mind is one of the most valuable things a person can have- and that trusts are a simple way to secure that peace. If you or a loved one wants to establish a trust in Bakersfield, don’t hesitate to call 661-384-6940 to set up your free consultation today.