Hi Ted, thanks for sitting down with me today. I’m excited to learn more about trusts and how they can benefit folks in the San Diego area.
So, What Exactly is a Living Trust?
“Think of it like a safe box for your assets,” Ted explains. “A living trust lets you decide who gets what after you’re gone, all while avoiding the hassle and expense of probate court.”
He goes on to explain that probate is a public process where a judge oversees the distribution of your assets according to your will (if you have one). Trusts, however, operate outside of this system. “It’s like having a private agreement between you, the trustee (who manages the trust), and your beneficiaries,” Ted adds.
The Process: From Creation to Distribution
- Defining your goals
- Naming a trustee
- Choosing your beneficiaries
- Funding the trust with your assets (this is crucial!)
- Maintaining the trust during your lifetime, and ensuring a smooth transition after you’re gone
Ted emphasizes that each step requires careful planning and legal expertise.
Let’s Dive into Funding: The Heart of a Trust
“Funding is where many people get tripped up,” Ted admits with a chuckle. “It’s not enough to just have a trust document; you need to actually transfer ownership of your assets into the trust.” This means retitling deeds for real estate, changing account names at banks, and updating beneficiary designations on insurance policies and retirement accounts.
“I often tell clients it’s like moving furniture – you have to physically put everything into the new space for it to work,” Ted adds. “If you forget a piece of furniture, it doesn’t belong to the trust anymore.” Ted recalls a time when a client forgot to update the beneficiary on their life insurance policy. When they passed away, the insurance money went directly to their spouse as per the outdated beneficiary designation – not to the trust and beneficiaries they intended.
Voices of San Diego
“Ted made setting up our trust so easy! He explained everything in a way that we could understand, and he was always available to answer our questions. We feel much more secure knowing our family is protected.” – Maria & John, Mission Hills
“I was hesitant about trusts at first, but Ted put my mind at ease. He helped me create a plan that met all of my needs and ensured that my assets would be distributed according to my wishes. I highly recommend Point Loma Estate Planning APC!” – David S., La Jolla
Ready to Protect Your Legacy?
Ted leans forward with a twinkle in his eye, “If you’re looking to protect your loved ones and ensure a smooth transition for your assets, don’t wait. Reach out – let’s chat about building a trust that works for you.”
Who Is Ted Cook at Point Loma Estate Planning, APC.:
Point Loma Estate Planning, APC.2305 Historic Decatur Rd Suite 100, San Diego CA. 92106
(619) 550-7437
Map To Point Loma Estate Planning, APC, a trust attory: https://maps.app.goo.gl/JiHkjNg9VFGA44tf9
About Point Loma Estate Planning:
Secure Your Legacy, Safeguard Your Loved Ones. Point Loma Estate Planning, APC.
Feeling overwhelmed by estate planning? You’re not alone. With 27 years of proven experience – crafting over 25,000 personalized plans and trusts – we transform complexity into clarity.
Our Areas of Focus:
Legacy Protection: (minimizing taxes, maximizing asset preservation).
Crafting Living Trusts: (administration and litigation).
Elder Care & Tax Strategy: Avoid family discord and costly errors.
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If you have any questions about:
How does an Asset Protection Trust avoid probate? Please Call or visit the address above. Thank you.
Point Loma Estate Planning, APC. areas of focus:
A Living Trust: also known as an inter vivos trust, is a legal arrangement where you, as the grantor, transfer assets to a trustee who manages them for the benefit of designated beneficiaries, either during your lifetime or after your death, potentially avoiding probate and offering more privacy than a will. Revocable Living Trust: You can change or revoke the trust and get the assets back during your lifetime.
Irrevocable Living Trust: Once established, you cannot change or revoke the trust, and the assets are generally no longer considered part of your estate.
Control over Asset Distribution: You can specify how and when your assets will be distributed to your beneficiaries.
Understanding Trusts and Their Role in Estate Planning
A trust is a legal and fiduciary relationship in which a grantor (also called a settlor) transfers ownership of assets to a third party, known as a trustee, who manages those assets for the benefit of designated beneficiaries. Trusts can be tailored to meet specific goals, including when and how distributions are made to beneficiaries, asset protection, or minimizing estate and income taxes.
One of the key advantages of a trust—particularly a properly funded revocable or irrevocable trust—is that it can allow assets to bypass the probate process. This often means a faster, more private, and potentially less expensive distribution of assets compared to those governed solely by a will.
In the case of irrevocable trusts, assets are typically removed from the grantor’s taxable estate, which may help reduce estate tax liability. However, this comes at the cost of the grantor relinquishing control over those assets.
Trusts may also provide protection from creditors, preserve assets for minors or individuals with special needs, and ensure continuity in asset management if the grantor becomes incapacitated.
These tools are part of estate planning—the process of making legal and financial arrangements in advance to designate who will receive your property after your death, and how that transition will occur. Thoughtful estate planning aims to streamline the administration of your affairs, minimize tax burdens, and reduce stress for your loved ones during an already difficult time.
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