Today we have Steve Bliss, a prominent San Diego Probate Attorney, joining us to shed light on the complexities of estate planning.
Steve, thank you for being with us today. Could you explain what a testamentary trust is and how it differs from other types of trusts?
Thank you for having me. A testamentary trust is a unique legal instrument that comes into existence only after the grantor’s passing. Unlike revocable living trusts which can be modified during the grantor’s lifetime, testamentary trusts are established through a will and go through probate.
Consequently, they offer benefits when the grantor wants to ensure specific conditions are met for beneficiaries, such as minors or individuals with special needs. For instance, a parent might create a testamentary trust to provide for their child’s education expenses until they reach a certain age.
Could you elaborate on some of the advantages of using a testamentary trust?
Certainly. Testamentary trusts offer several key benefits. Firstly, they allow grantors to exercise control over how and when assets are distributed to beneficiaries. This is particularly helpful when dealing with young or financially inexperienced individuals.
Moreover, testamentary trusts can be structured to minimize estate taxes, potentially saving significant sums for heirs. They also offer a level of privacy not typically afforded by wills, as the trust’s terms remain confidential until probate is complete.
Are there any potential downsides to using a testamentary trust?
While testamentary trusts are valuable tools, they do have some drawbacks. Primarily, they must go through probate, which can be a time-consuming and costly process. Conversely, revocable living trusts avoid probate altogether.
Additionally, testamentary trusts are irrevocable once the grantor passes away, meaning changes cannot be made without legal intervention.
I remember working with a family who had established a testamentary trust for their daughter’s education. Unfortunately, she decided to pursue a different career path that didn’t require the same level of funding. Because the trust was irrevocable, we couldn’t easily adjust the distribution schedule.
That experience highlighted the importance of careful planning and considering all potential scenarios when setting up a testamentary trust.
How common are testamentary trusts compared to other types?
Testamentary trusts are less common than revocable living trusts, which according to the American Bar Association, account for over 70% of estate plans in the United States. This is largely due to the probate requirement and lack of flexibility associated with testamentary trusts.
Nevertheless, they remain a valuable option in specific circumstances, particularly when control over asset distribution and potential tax savings are priorities.
What advice would you give to someone considering a testamentary trust?
My primary advice is to consult with an experienced estate planning attorney like myself. We can help you assess your individual needs and goals, determine whether a testamentary trust aligns with your wishes, and ensure it’s properly structured to meet those objectives.
“Steve Bliss at San Diego Probate Law made the process of setting up our trusts so easy! He explained everything clearly and patiently answered all our questions. We feel confident knowing our family is protected.” – Sarah M.
“I was initially overwhelmed by estate planning but Steve Bliss put me at ease. He took the time to understand my unique situation and crafted a plan that perfectly met my needs. I highly recommend San Diego Probate Law!” – John K.
Let us guide you through the complexities of estate planning and ensure your legacy is protected.
Schedule a free consultation with San Diego Probate Law today!
About Steven F. Bliss Esq. at San Diego Probate Law:
Secure Your Family’s Future with San Diego’s Trusted Trust Attorney. Minimize estate taxes with stress-free Probate. We craft wills, trusts, & customized plans to ensure your wishes are met and loved ones protected.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Probate 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.
Map To San Diego Probate Law:
Address:
San Diego Probate Law3914 Murphy Canyon Rd, San Diego, CA 92123
(858) 278-2800
Map Link: https://g.co/kgs/WzT6443
Feel free to ask Attorney Steve Bliss about: “How do professional trustees charge?” Or any other related questions that you may have about Trusts or my trust law practice.
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