Burbank Trust Lawyer

There are many options available to protect your assets while you are living and when you pass away. A trust is one of those options, and contrary to popular opinion, it is not only for the wealthy. While there are many benefits to creating trust, it can be a complicated process that requires several steps. An experienced Burbank trust attorney may prove invaluable for ensuring your trust is set up appropriately.

If you are interested in creating a trust but are unsure of the process, an asset lawyer can assist you. Robert G. Petrovich, Attorney at Law, has extensive experience helping clients manage their trusts with integrity and thorough knowledge. We employ a collaborative approach, ensuring your individual needs are met.

What Is a Trust?

A trust is a legal arrangement that allows a trusted person to manage and distribute another person’s assets. Unlike probate, in which a person’s assets are distributed by the court, a trust allows the owner to have more control over how and to whom their assets are distributed. It is an integral part of estate planning, and anyone can set up a trust.

Types of Trusts

There are two main types of trusts: revocable and irrevocable. A revocable trust can be altered by the grantor at any time, except in the case of incapacitation. It generally allows them more control over their assets while they are alive and allows them to determine who receives their assets once they die. It is revocable because the terms can be changed at any time by the grantor unless they become incapacitated. In that case, a trustee becomes responsible.

An irrevocable trust is irreversible by the grantor. Once the trust is established, it is out of the grantor’s hands, and the terms cannot be terminated or changed. It is often a way for an estate to avoid probate.

Who Is Involved in Managing a Trust?

Unlike other forms of estate planning, there are only three main parties involved in establishing, managing, or distributing a trust, excluding the lawyer. They include the grantor, who sets up and funds the trust; the trustee, who has the fiduciary duty to ensure the trust is administered per the grantor’s wishes; and the beneficiaries, who are entitled to the assets and funds that are within the trust.

The trustee can be one person, such as a family member, friend, or lawyer. However, a bank can also serve as a trustee, as can a group of people. Trustees must be chosen carefully because they are responsible for administering the trust. In California, a trustee has 15 legal duties per California Probate Code Sections 16000-16015.

The Benefits of Creating a Trust

Most people establish a trust as a way to avoid the lengthy, complex, and sometimes costly process of going through probate. For Californians whose assets are over $184,500, their estate must go through probate and be distributed by the court. However, with a trust, those assets can be distributed exactly as the grantor intended. Considering that the median income in Burbank is $95,816, many residents could benefit from establishing a trust.

Besides avoiding probate, other benefits of establishing a trust include:

• Protecting your assets
• Tax benefits
• More control over asset distribution
• Privacy
• Facilitates charitable giving

In one example of charitable giving, the Burbank-Glendale-Pasadena Regional Housing Trust (BGPRHT) awarded The Homeless Solutions Center over 3 million dollars to fund their project. The trust allowed several benefits to contribute funds, which provided a way to make a difference in their community.

How a Lawyer Can Help

A trust is a legal document; therefore, it should be reviewed by a lawyer to ensure it is legally binding. You may wish to have a lawyer help you establish the trust, manage it, or administer it. If you are a trustee, you should be clear about your legal duties to avoid monetary losses that may result in a claim made against you. A skilled trust lawyer can help you avoid this while ensuring the trust is managed properly.

FAQs

Q: How Much Does It Cost to Set Up a Trust?

A: The cost to set up a trust in California varies depending on the type of trust, its complexity, and other extraneous factors. Typically, revocable trusts are less costly as they are simpler and can be managed by the grantor when they are alive. Irrevocable trusts can be more costly because of the legal requirements and complexity of administering them. Moreover, if there are multiple beneficiaries involved, the trust can cost more to maintain.

Q: How Much Does a Trust Attorney Charge?

A: The cost of a trust attorney depends on factors such as the complexity of the trust, the lawyer’s skill and experience, and the firm’s location. Lawyers can charge flat fees, hourly rates, or calculate a percentage of the estate to determine their fees. If your case is more complex, your lawyer may charge more. Likewise, if the firm is in a location with a higher cost of living, it could be more expensive.

Q: Can I Avoid Probate If I Set Up a Trust?

A: Yes, you can avoid probate if you set up a trust. The purpose of probate is to manage a person’s assets when they die, with or without a will. Since trusts are set up while a person is living, there is no need for a court to distribute the assets since the trustee is legally obligated to do this.

Q: Is There a Minimum Amount to Start a Trust?

A: No, you can establish a trust using any amount of money. Trusts are not only for the wealthy; anyone with assets can establish one. The only requirement is that the assets are transferable. However, it is important to determine whether the cost of establishing the trust is worth the amount the trust is valued at.

Three Decades of Experience in Estate Planning

We have over 30 years of experience helping several generations of clients set up and manage trusts. At Robert G. Petrovich, Attorney at Law, we take a client-centered, collaborative approach to estate planning, which helps yield positive results. Whether you are on the fence about setting up a trust or ready to get started, contact us for a consultation today.