A living trust is a document that allows you to pass on your assets to the person(s) or organization(s) of your choosing. Creating a trust is highly recommended as it helps save time, money and provides asset protection by avoiding probate, the process that courts use to determine which party the property should go to after the property owner’s death. The probate process results in significant delays in inheritance and costs in administration, which could be easily avoided with a properly executed trust. At Tsang & Associates, our competent attorneys will provide you with a high-quality living trust to help you transfer your estate to your loved ones.
Our fee structure is unique to us as we strive to tailor our services for each client individually. We adapt price standards that are capable of fluctuating for each client. Clients may retain us for one or all of the above steps/services of a personal loan agreement.
We are happy to customize a proposal for you during a consultation. Please see the below information.
WHAT MAKES US DIFFERENT
At Tsang & Associates, we treat each client like a well-formed partnership and involve you in every step of the process. When preparing a living trust, we work together with you until you are satisfied with our services. By the end of our partnership, our goal is not only to help you find success but also to help you become an expert in your own case.
CASE PROCESSING OVERVIEW
Step 1: Strategy Session for Living Trust
This is the most crucial step for your Living Trust. We will review all of the supporting documents to create a strategy, a customized checklist, and a timeline to serve as the guiding foundation for the entire case preparation.
Step 2: Review Information
After consultation, we will carefully review all information that was given to us.
Step 3: Strategizing the transfer of finance into trusts
We will then carefully strategize the way we can transfer all desired finances into a trust.
Step 4: Filling out forms and legal documents
We will fill out all of the necessary legal documents for you. A list of all the documents that we will fill for you will be listed below.
Step 5: Filing all necessary documents
Once we have successfully filled out all of your forms and documents, we will file them for you so that your living trust is formed.
- The purpose of trust
- Information concerning Truster, Trustee, and Beneficiary
- Documentation concerning all financial assets
We will review your list of assets, liabilities, income and your retirement plan to create a strategy to help you transfer these assets while minimizing taxes. In addition to the trust, we also prepare the following legal documents:
- Will Drafting and Execution
- Power of Attorney
- Healthcare Directive
- Abstract Trust
- Attorney Certification of Trust
In short, we provide a start to finish service. Your case is safe with us until the case is complete.
Types of Trusts
A revocable living trust stipulates that the trustor’s assets are their own until death, after which they become the property of chosen beneficiaries. The living trust allows a “trustee” to manage the assets until the trustor’s death. Many people name themselves as the trustee, but the trustee can be anyone of the trustor’s choosing. The trust will stipulate that the trustee must deal with the trustor’s assets in an approved way. Under a revocable living trust, the trustor is taxed on the assets in question and any income they may generate until death, unless someone else is the trustee
- A living trust is recommended because it helps avoid probate, a rather long and drawn out process of verifying the will, or the expenses that go along with it;
- Probate applies to the property owned at death but will not apply to the property involved in the trust, as that is property controlled by the trustee;
- Living trusts are also confidential as oppose to a probate proceeding which is available to the public.
- Revocable living trusts can be annulled any time until trustor’s death allowing you to change your mind;
- Assures uninterrupted income and access to principal for family beneficiaries;
- Eliminates time delays in settling the estate–the successor trustee can immediately disburse the funds as indicated in the living trust agreement.
An irrevocable trust may not be changed once it is signed, unless the beneficiary approves of the change. There are tax advantages to signing an irrevocable living trust, as it stipulates that the trustor is no longer considered the owner of the assets put into the trust. One spouse may sign an irrevocable living trust so that their estate goes to the other spouse as a trustee and vice versa.
- When one spouse dies, the assets they put into the trust will not taxed, because they have now been transferred to the trust itself
- An irrevocable trust will also enhance eligibility for Medicaid as long as the trustor won’t need it for another 5 years;
- Provides for property management or disbursement;
- Protects from creditors who are not allowed to claim properties effectively placed in an irrevocable trust.
A charitable trust transfers truster’s assets to a charity. This type of trust will usually be tax exempt. Trusters may generate a will that leaves their assets to a charity before they die such that they will receive a tax deduction, or, if they leave their assets to a given charity after they die, their estate will receive a tax deduction.
Special Needs Trust
A special needs trust must be completed if the trustor wishes to leave their assets to someone who is disabled. Unfortunately, under traditional trusts, certain assets such as large amounts of cash, would render the beneficiary ineligible for Supplemental Security Income or Medicaid if the beneficiary is disabled. Therefore, signing a special needs trust allows a trustee to handle the money in such a way that benefits the disabled beneficiary, as the presence of a trustee allows the beneficiary to still apply for SSI and/or Medicaid.
Advantages of the living trust/healthcare directive
A living trust is recommended because it helps avoid probate, a rather long and drawn-out process of verifying the will, or the expenses that go along with it. Probate applies to the property owned at death but will not apply to the property involved in the trust, as that is property controlled by the trustee. Living trusts are also confidential as oppose to a probate proceeding which is available to the public. Revocable living trusts can be annulled any time until the trustor’s death allowing you to change your mind.
Abstract of Trust
An abstract of trust is a document provided that will summarize the trust but omit the name of the beneficiary.
Attorney Certification of Trust
A Certification of Trust is issued as a statement to prove that the attorneys involved in its creation are familiar with the contents of the trust and that it is valid under any applicable state trust laws.
A healthcare directive states what specific measures the trustor would like taken in the event that they are dying. The healthcare directive is drafted to dictate who is in charge of medical decisions (your “agent”), preferred specific care, organ donation preferences, and doctor of choice. It should also contain the trustor’s signature and the signature of two witnesses. After signing, a copy of the healthcare directive should be sent to the agent, doctor, and healthcare providers.
Power of Attorney
The trustor may grant an agent power of attorney over certain decisions, such as financial or medical matters that apply to them. They may grant nondurable power of attorney, which will expire when they become incapacitated. They may also grant durable power of attorney, which will continue even after they are incapacitated. Springing power of attorney may also be granted, such that it will take effect only in the event that the trustor is incapacitated a certain way. To be incapacitated is defined as not understanding the gravity of the decisions they are making.
Frequently Asked Questions
Do I still need a will if I set up a living trust?
- Yes you do. Wills deal with property that is not included in the living trust.
Can I include property in my trust if I still owe money on it?
- Yes you can. Houses with mortgages on it is a very common example of a property in trust.
Why should I make a living trust?
- Property left thought eh trust does not have to go through probate court. Probate court supervised process of paying your debts and distributing your property to the people who inherit it.
SCHEDULE A SESSION
Call or email us to set up your 1-hour consultation. Easily pay the $250 consultation fee over the phone or through our email link. If you would like to have a quick chat with our team before setting up the consultation, feel free to use the calendar on the right to book your 10 minute call.
In addition to living trust, we also specialize in other areas of family counsel. At Tsang & Associates, we treat you like family to ensure your family gets the full legal support needed. Check out our comprehensive services down below.
IT’S LIKE HAVING A LAWYER IN THE FAMILY
- As a family-owned law firm, we pride ourselves on taking care of our clients as if they are family. As your family counsel, we offer you the same support we provide our family, whether it is legal representation or problem-solving.
- A lawyer in the family provides you the comfort to pursue any endeavors and face any challenges when they arise.
HOW IT WORKS
Just like your bank account, you maintain $5,000 fully-refundable deposit in your own private Escrow Account. The money you deposit will go towards your billing services and you are able to take out the money anytime. If a problem arises, we assist and guide you if you have the $1,500 amount in your Escrow account. Also, when you have a family counsel with us, we provide exclusive service and fee deductions on additional legal services you might be interested in.
Situations happen. To protect your family from the negative and long term effects of adversaries, a family counsel can be tremendously beneficial and valuable. From real estate planning to responding to indentity theft, we are here to mitigate and prevent any lasting damages to the welfare of your family.
Planning ahead helps you build a life of stability and success.
If a problem arises, you have a trusted attorney you can rely on.
Leave a legacy for your children and pave the pathway for their success