LIVING TRUSTS PASADENA
Pasadena’s Best Financial Advice from Figco on Living Trusts
Pasadena’s best financial and taxation advisers, Figueroa & Co., are here to advise you on living trusts. We passionately care about what we do and strive to help you as an individual make the best use of your financial affairs. Living trusts are used as a way of managing and holding property throughout a person’s life and then distributing it all after they have died. They are one of those least problematic ways of holding property and then transferring it later in life.
Living trusts are widely used, because any property placed in a living trust bypasses the drawn out and often expensive probate procedure, particularly for estates worth more than $100,000. This value varies from state to state.
If you live in Pasadena and would like advice or further information about setting up a living trust, call Figueroa & Co.’s financial and tax consultants, who have all the experience and answers that you need to help you formulate your financial plans right now and well into the future.
Living Trusts and Taxes
If and when a person decides to form a living trust, they then become the trustee for every piece of property that is placed in the trust. The trustee has identical rights to an owner; meaning that they have complete control of all aspects of that property when still alive.
The trustee pays taxes on any income in the living trust by using their social security number and using identical tax percentages and filling in the same tax forms that the trustee currently uses. Throughout the trustee’s life, he or she can alter or annul the trust whenever they wish.
The property can be sold or transferred to another person as well. You will not breach any mortgage or other loan agreement if you transfer your home into a living trust and you do not pay any more tax on your real estate either.
A Living Trust Does Not Give You Creditor Protection
A living trust does not offer much in the way of creditor protection. It is not possible for the trustee to evade bank foreclosure and debt collection if property is transferred into a living trust. This quite simply means that no assets are protected from creditors. But what is quite useful about a living trust is that when the trustee dies, a well thought out trust which has been planned to be of benefit to your family can protect the assets from any creditors that a spouse or children or grandchildren may have.
Using the advantages of a living trust, the family home can be transferred to other generations and avoids having to use the probate court.
A living trust is convenient, private and an organized way of distributing an estate without going through the probate courts, and it protects and preserves your family monetary legacy for many years into the future with minimal interference from the tax system.
How Can You Set Up a Living Trust?
There are 3 stages involved:
- Declaring the trust’s terms.
- Transferring of assets.
- Trustee accepting fiduciary responsibility.
All three stages can be completed in a single trust declaration, which is notarized and signed by all of the trustees. A member of the legal profession should be present when the living trust arrangement is finalized.
Living Trusts Should be Updated
Updating of a living trust should occur now and again especially if circumstances change. If an amendment is made to a living trust, a specific document has to be used which is then signed and notarized.
Living Trust Funding
The name of the trustee is assigned to all of the property that is secured in the living trust. All items in the property, which may include furniture and jewelry, become part of the living trust once the declared trustee of the property has signed and sealed their position.
A recorded deed is used when property is transferred and it names the trustee who is then the new owner.
Setting up a Living Trust for the First Time
If you are in the situation that you own property and you want to use a straightforward, cost effective way of ensuring your property is transferred smoothly when you die, then a living trust is a great choice. However, don’t be fooled into thinking that you can undertake this procedure on your own. It is extremely important to thoroughly work out the present day situation and future aspirations for your property before rushing into things.
You will need assistance from an experienced attorney, but before that you must seek advice from a financial and tax consultant before you put your signature to paper. Figueroa & Co. have a great reputation in Pasadena for putting property owners on the right path when it comes to placing anything in a living trust. Someone with the sound knowledge and experience of Figco is a credit to their profession and is always waiting to pass their life long learning to others.
Figco’s fees fit the caliber of the work we provide. We like to see our clients walk out of the office with a smile on their face.