Monrovia Trust Lawyer

It’s never too early to start planning for your estate, and creating a trust is an excellent way to leave something behind for those you love when you’re gone. You may encounter options online that allow you to do it yourself, which seems convenient, but setting up a viable trust with active asset management and responsible trustees is no simple task. A knowledgeable Monrovia trust attorney can help you navigate this complex landscape.

What Is a Trust Attorney?

A trust attorney is a licensed lawyer who can help you create, manage, and administer a trust. A trust is a legal tool that places assets such as real estate or money into a container to be given to someone at a later time. There are three parties to a trust:

• The grantor creates the trust and puts assets into it. They determine the rules for management of the trust.
• A trustee is the person who manages the trust and upholds the grantor’s rules.
• A beneficiary is the person who receives the benefits from the trust.

A trust allows your beneficiaries to avoid probate after your death. A trust also is not public like a will might be, allowing you, your trustees, and your beneficiaries private asset management. If there are minor beneficiaries you want to provide for, a trust allows you to plan for this in advance and gives you control over how inheritances are distributed. You can stipulate that beneficiaries receive certain benefits after a certain age, for example.

The Complexity of Asset Management

Managing an estate is a complex job, requiring a good understanding of how different types of assets can be handled and California trust laws. While a trust is optional, it is a great tool for helping you and your loved ones manage your assets.

When a family member dies, it’s an emotional time for their loved ones. The stressful, expensive probate process is a worst-case scenario that setting up a trust allows you and your loved ones to avoid.

Why Avoiding Probate Is Ideal

Probate can be lengthy, costly, and stressful for all parties involved. Without clear guidance on who is to inherit what, your surviving family and loved ones can become embroiled in a heated exchange as they go through probate to settle your estate. The legal fees associated with probate are often much higher than what you will pay if you hire a trust attorney.

In fiscal year 2023-2024, the Superior Court of Los Angeles County had 19,046 probate cases filed. Probate can result in Monrovia families losing assets and property, and beneficiaries’ inheritances being stifled. Working with an attorney to create a trust helps them avoid that.

What To Know About Managing a Trust

Any value the trust accrues is taxed, similar to how employee earnings are taxed. Gains to your trust are taxed according to four different brackets:

• $0 to $3,150: 10%
• $3,150 to $11,450: 24%
• $11,450 to $15,650: 35%
• $15,650+: 37%

California trust law is part of Division 9 of the California Probate Code. It defines what a trust is, explains how to create or dissolve a trust, explains the duties and powers of trustees, outlines the rights of beneficiaries, and stipulates how disputes with the trust will be resolved.

California trust law outlines the core legal standards all trusts must meet:

• Trustees must act in the interests of beneficiaries, always. This means being impartial, managing assets carefully, and avoiding conflicts of interest.
• The grantor must meet California trust requirements, which include being of sound mind when the trust is created, designating at least one beneficiary, owning property that will be included in the trust, and having a lawful purpose for the trust.
• Trustees must keep the inventory and value of assets included in the trust.
• A trust can be dissolved if all beneficiaries and the owner agree to it, if the trust has served its purpose, or if the purpose for the trust becomes obsolete.
• Any disputes related to the trust are handled with trust litigation, part of the Probate Division of the court.

Hire a Trust Attorney

Monrovia residents seeking a trust attorney should look for someone with experience drafting both revocable and irrevocable trusts and who is also familiar with California trust law. A revocable trust, also called a living trust, allows you to amend or cancel it at any time as long as you are mentally competent. An irrevocable trust is one that cannot be changed or canceled once established. Any amendments to these trusts require court approval.

A quality trust attorney can also help their clients transfer assets into the trust and advise trustees on fiduciary duties. Should a dispute arise, a trust attorney can handle any litigation necessary and can help modify or dissolve the trust if circumstances change.

Robert G. Petrovich brings over four decades of estate administration law experience to the table, meaning he’s familiar with California trust law, the California Probate Code, and the concerns of Monrovia families as they make plans for the future. The team at Robert G. Petrovich, Attorney at Law, maintains the same level of dedication as our founder. Take the first step in planning for your family’s future by contacting our office today.

FAQs

Q: What Does a Trust Attorney Actually Do?

A: A trust attorney is a licensed lawyer familiar with California trust law who can help create and manage trusts. They also help you manage property within your trust, making sure assets are transferred properly and that your trust is always funded. Trust attorneys also advise trustees on administration, taxes, and legal compliance.

Q: Do I Really Need a Trust Attorney, or Can I Make a Trust Online?

A: While online tools do exist to help you compose a trust on your own, California trust law is complex. Without proper funding, your trust could fail. If your trust is not updated to reflect your circumstances accurately, you may be subject to penalty fines regarding your taxes, or your beneficiaries may end up in probate after your death. Working with a Monrovia trust lawyer helps you avoid these pitfalls.

Q: What Is the Difference Between a Trust Attorney and an Estate Planning Attorney?

A: The difference between a trust attorney and an estate planning attorney lies in the scope of their services. Both help prepare and manage assets before and after you pass away, but an estate planning attorney helps you prepare all of your estate, including a will, power of attorney, advanced directive, and trusts, while a trust attorney focuses only on creating and managing trusts.

Q: Can a Trust Help Me Avoid Probate in California?

A: Yes, a trust can potentially help you avoid probate in California. A trust that is properly funded and managed allows your beneficiaries to skip probate after your death. No court-supervised procedures or lengthy, emotional deliberations. The cost of setting up your trust will also be less expensive than the cost of probate.

Contact Robert G. Petrovich, Attorney at Law

If you’re considering setting up a trust, don’t go the DIY route. California trust law can be difficult to navigate if you’ve never done it before, and the team at Robert. G. Petrovich, Attorney at Law, is experienced with creating and managing trusts for Monrovia residents. Contact our office today to set up a consultation and get started planning for your future.