Trusts are an extremely useful legal tool in many contexts, and several variations are suited for a variety of purposes.
At Fox, Shjeflo & Babu LLP, our San Francisco trust lawyers understand the uses, advantages, and disadvantages of various types of trusts. We have the knowledge and experience to craft trusts that help our clients meet their financial goals.
The utility of a living trust
A person may choose to establish a living trust in the Bay Area for many reasons. For example, a person can create a living trust to fund charitable pursuits that he or she cares about, while still maintaining some control over the use of the funds. Living trusts can also be a useful alternative to giving a lump-sum gift to a loved one. Establishing a trust instead of an outright gift allows the donor to retain some control over the assets. This is especially useful when making a gift to a minor child or other individuals who are unable to handle property.
In addition, certain types of trusts can protect a gift from the threat of the beneficiary’s creditors, or can even allow beneficiaries to receive regular income without affecting their Medicaid eligibility. Our experienced trusts and estates lawyers at Fox, Shjeflo & Babu LLP understand the legal requirements for forming these very specific types of trusts and can ensure that their clients correctly establish the right trust for their purposes.
The utility of a testamentary trust
While a will is still an essential element of any estate plan, the addition of a testamentary trust can add flexibility and control that is simply not possible with a will alone. Rather than trying to provide for every eventuality in the will itself, a testamentary trust allows a person to designate a trustee to handle portions of the estate. In addition, while a will can usually provide only lump sum distributions to beneficiaries, a testamentary trust allows a person to establish a lasting source of income for his or her loved ones.