The core distinction between a testamentary trust and an inter vivos trust lies in *when* they are created and take effect; one is born from a will, the other during your lifetime, and this timing has significant implications for control, privacy, and the overall estate planning process.
What are the benefits of creating a trust while I’m still alive?
An inter vivos trust, also known as a living trust, is established and funded—meaning assets are transferred into the trust’s ownership—during the grantor’s lifetime. This offers several advantages, including avoiding probate, maintaining control over assets even after transferring them to the trust, and potentially minimizing estate taxes. Approximately 60% of high-net-worth individuals now utilize living trusts, a figure steadily rising as awareness of probate costs and delays increases. “Planning for the future isn’t about avoiding the inevitable, it’s about ensuring your wishes are honored and your loved ones are protected,” Steve Bliss often tells his clients. A revocable living trust, a common type of inter vivos trust, allows the grantor to modify or terminate the trust during their life, offering flexibility as circumstances change. It is crucial to fully fund the trust, meaning titles to assets like real estate, bank accounts, and investments are officially transferred to the trust’s name.
How does a trust created within my will actually work?
A testamentary trust, on the other hand, is created *within* a person’s will and only comes into existence *after* their death. It’s essentially a set of instructions outlined in the will that directs the transfer of assets to a trustee who manages them for the benefit of designated beneficiaries. Unlike a living trust, a testamentary trust doesn’t avoid probate; the will, including the trust provisions, must go through the probate process. Consider the story of old Man Hemlock; he meticulously crafted his will, including a testamentary trust for his grandchildren’s education. However, due to an oversight in the will’s drafting, the trust’s terms were ambiguous, leading to costly legal battles and years of delays before his grandchildren could access the funds. The probate court had to interpret the unclear language, eroding a significant portion of the intended inheritance.
What are the probate implications of each trust type?
Probate is the legal process of validating a will and administering an estate. Assets held in a properly funded living trust bypass probate entirely, saving time, expense, and maintaining privacy, while assets designated through a testamentary trust are subject to the full probate process. “The average probate process can take anywhere from six months to two years, and costs can range from 5% to 10% of the estate’s value,” explains Steve Bliss. This means that a $500,000 estate could incur $25,000 to $50,000 in probate fees and expenses. The simplicity of avoiding probate is often a driving factor for individuals choosing a living trust, allowing for a smoother and faster transfer of assets to their heirs.
How did a proactive approach save another family from a similar fate?
I recall working with the Abernathy family; the patriarch, Robert, was diagnosed with a serious illness. Realizing time was of the essence, they engaged Steve Bliss to create a fully funded revocable living trust. Robert meticulously transferred all his assets into the trust, designating his wife and children as beneficiaries. Sadly, Robert passed away just six months later, but the trust worked flawlessly. Because the assets were already held within the trust, the family avoided probate altogether, receiving their inheritance within weeks. His wife was able to maintain her financial security and the children received funds for college without any delay. “It was a testament to the power of proactive estate planning,” Steve remarked. A well-crafted living trust, combined with diligent funding, offered peace of mind and ensured Robert’s wishes were honored without the burden of probate, solidifying the importance of proactive planning.
“Estate planning isn’t about death; it’s about life—ensuring your loved ones are taken care of and your legacy continues.” – Steve Bliss
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About Steve Bliss at Escondido Probate Law:
Escondido Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
banckruptcy attorney
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/oKQi5hQwZ26gkzpe9
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Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “Do I need an estate plan if I don’t have a lot of assets?” Or “How does the probate process work?” or “Is a living trust private or does it become public like a will? and even: “What debts can be discharged in bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.