Dec 7, 2022
This episode of ABCast focuses on trusts - what is a trust and why would one need to consider a trust. The episode begins with a review of the key terms associated with a trust and an overview of the legal importance and structure of a trust itself. A trust is a separate legal entity which provides additional protections for the assets placed within the trust. These protections extend to shielding the assets from creditors while ensuring that they are well managed and ultimately passed on directly to the beneficiaries intended by the creator(s) of the trust. There are several forms of trust vehicles, including but not limited to a revocable trust, an irrevocable trust, a special needs trust and a charitable trust. Each form of trust carries protections and limitations associated with the purpose of the trust and the intentions of those who create it. The conversation includes an overview of the time and expense associated with the process of probate, and why it is in the best interests of most people, including simply those who own their own home in San Diego and Southern California, to avoid having their assets taken through probate. In essence, a trust allows you to pass assets on to the people or entities you care about in a fairly immediate time frame after passing while saving your beneficiaries a substantial amount of time and money. A trust ensures your wishes are accomplished while allowing one to ensure the beneficiaries have access to the assets contained within the trust in a manner which best suits the asset(s) as well as each beneficiary. Controls within the trust can help protect a beneficiary from wasting the assets or to deliver them at a specific point in time (age, completion of rehab, etc.) or to simply ensure they pass to the beneficiaries in an efficient manner.