Upland Living Trust & Wills Attorney
Helping Clients in the Inland Empire with Living Trusts and Wills for Over 20 Years
Thinking about death is certainly not pleasant. However, it’s something that you need to consider for the well-being of your loved ones. You should ensure that your wealth is transferred to the people you love after your death, which is why estate planning is so important.
When it comes to arranging for the management and disposal of the estate, most people become stumped when they hear the terms ‘living trusts’ and ‘living wills’. Are they the same thing? How are they different? Here are some of the differences, but every situation is unique and requires the counsel Scot Moga, an experienced living trust & wills attorney in Upland, CA.
A living will refers to a legal document that lets you express your wishes regarding medical treatment in the event you are not able to communicate. Also known as advance directive or directive to the physician, a living will allows you to specify whether you want to be kept on a respirator or fed through a tube when you become physically handicapped.
A living trust is completely different than a living will. It is a legal document that allows you to transfer your assets into a trust. The assets are distributed by a trustee who is mentioned in the living trust. The aim of creating a living trust is to ensure that your assets are distributed among the designated beneficiaries after your death as per your wishes.
Living trusts are of two types: revocable and pour-over trusts.
A revocable trust is a type of living trust that can be canceled or modified by the grantor during his or her lifetime. The grantor maintains ownership of the assets, and receives any income earned on the assets during the lifetime. The ownership of the assets is transferred to the beneficiaries only upon the death of the grantor.
A pour-over trust is an irrevocable trust whereby the ownership of the asset is transferred to a trustee. All the investment decisions are made by the trustee. The assets are transferred to the beneficiaries after the death of the grantor. Assets kept in a pour-over trust do not entail capital gains tax. However, a gift tax is levied when the assets are transferred to the heirs.
The benefit of living trusts is that the assets do not go through the long and expensive probate process. This means faster distribution of the assets to the beneficiaries. The trustee will fulfill all the debt obligations and transfer the remaining assets to the heirs as per the instructions included in the living trust.
Is a Living Trust or Will Right for You?
Living trusts and wills serve different purposes. Both are important to ensure that your wishes are honored when you die or live in a vegetative state. They help in preventing family disputes that can end up in courts.
If you need to draft, modify or even dispute a living trust or will, you can contact Moga Law Firm – serving the entire Inland Empire. The firm is headed by attorney Scot Moga who has extensive experience in probate and trust administration and estate planning cases in Upland, CA. You can call us today by dialing (909) 931-2444 for a no-obligation initial consultation, or contact us here. Se habla español.