There are many different types of trusts on the market today and the ones recommended to you by our Pasadena estate planning lawyers will depend based on your individual desires as far as what you hope to accomplish with putting property inside the trust.
A charitable remainder trust is a tool that enables you to transfer property into the trust while keeping an income stream from the property that was transferred into that. As the donor you are eligible to receive a charitable contribution tax deduction for your income and avoid capital gains taxes on that transferred property.
This is distinct from another type of trust that is commonly used, known as the revocable living trust. The revocable living trust in California can be used to avoid probate and to provide for management of your property not just after death but while you’re still alive.
This living trust goes into effect during the course of your life and the property that you place inside will be managed by a trustee and then distributed to beneficiaries as the trust outlines.
One of the biggest benefits of using a revocable living trust is that you are eligible to name yourself to serve as the trustee while you’re still alive, and then establish a successor trustee to take over when you pass away. Remember that revocable living trusts are valid in all states across the country regardless of where the trust was originally created.
