The flexibility to fund a trust over time, rather than solely at death, is a key benefit of trust-based estate planning, and many individuals are surprised to learn they don’t have to transfer all their assets at once. This process, often referred to as “phased funding,” allows you to gradually move assets into the trust during your lifetime, providing ongoing benefits and streamlining the estate administration process after your passing. It’s a common misconception that trusts are only effective after death; in reality, a properly funded trust can offer significant advantages during your life, such as asset protection and management in case of incapacity. Steve Bliss, as an Estate Planning Attorney in Wildomar, frequently guides clients through these phased funding strategies, tailoring them to individual financial situations and goals.
What are the benefits of funding a trust while I’m still alive?
Funding a trust during your lifetime, rather than solely at death, provides several advantages. It simplifies estate administration, avoids probate delays, and potentially reduces estate taxes. According to a recent study by the American Probate Research Association, probate can take anywhere from six months to two years, and cost 3-7% of the estate’s value in fees. Funding the trust while you are living bypasses this entire process for those assets. Furthermore, it allows you to experience the benefits of trust ownership, like privacy and control over asset distribution, immediately. It can also provide a layer of creditor protection, as assets held in a properly structured trust may be shielded from certain lawsuits. A crucial element is understanding the different types of trusts – revocable vs. irrevocable – as this dictates the level of control and flexibility you retain.
What assets can I transfer into a trust over time?
A wide range of assets can be transferred into a trust over time, including real estate, brokerage accounts, stocks, bonds, mutual funds, and even life insurance policies. The key is to retitle the ownership of these assets from your individual name to the name of the trust. Steve Bliss often suggests starting with smaller, easily transferable assets like brokerage accounts, and gradually moving towards larger, more complex assets like real estate. It’s important to work with a qualified estate planning attorney to ensure the transfer is done correctly and complies with all applicable laws. For example, transferring real estate requires executing and recording a new deed, and it’s crucial to ensure the legal description is accurate. This process doesn’t necessarily require a lump sum transfer; you can fund the trust incrementally as you accumulate assets or as your financial situation allows.
I heard a story about a client who waited too long to fund their trust, what happened?
Old Man Tiberius was a creature of habit, a retired clockmaker who believed in meticulous planning. He had a trust drafted years ago, a beautiful document detailing his wishes for his family and charitable donations. However, he never transferred any of his assets into the trust. He believed he had plenty of time. Then, a sudden stroke left him incapacitated and unable to manage his affairs. His family was left scrambling to navigate the probate process, facing significant delays, legal fees, and emotional distress. The simple transfer of assets, had he funded the trust earlier, would have been a small fraction of the expense and stress they were facing. It was a stark reminder that a trust is only effective if it’s funded. The family, now burdened with legal and administrative tasks, lamented the missed opportunity and the preventable hardship.
How did another client benefit from phased funding and careful planning?
Mrs. Gable, a savvy investor, sought Steve Bliss’s advice to protect her growing portfolio and ensure a smooth transfer of wealth to her grandchildren. She decided to utilize a phased funding strategy, starting with her brokerage accounts and gradually transferring her real estate holdings into the trust over a period of two years. This approach allowed her to maintain control of her assets while simultaneously preparing for the future. When she passed away peacefully in her sleep, the transfer of her assets was seamless and efficient. Her grandchildren received their inheritance quickly and without any unnecessary delays or legal fees. This allowed the family to focus on celebrating her life and legacy, rather than dealing with the complexities of probate. The experience underscored the power of proactive estate planning and the benefits of phased funding, demonstrating how a little preparation can go a long way in safeguarding your family’s future.
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
estate planning attorney near me
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “Do I need to plan differently if I’m part of a blended family?” Or “What happens when there’s no next of kin and no will?” or “Will my bank accounts still work the same after putting them in a trust? and even: “Can I convert my Chapter 13 bankruptcy to Chapter 7?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.