Paintings by Beverly M. Hoey

Pleasanton Trusts Lawyers

How to protect your assets with a trust

You work hard for your money, so it only makes sense that you should want to retain as much of it as possible for your family and the other people adn things that are important to you. Fortunately, there are many financial planning instruments you can use to make a big difference in how your money is put to use as you want, rather than paid in taxes. One of the best tools for this purpose is the trust, which enables you to provide assets to a beneficiary.

Types of trusts

There are several types of trusts to choose from, including:

Living trust, set up and in effect while you are living, generally designed to manage assets when you cannot or do not want to do so.
Testamentary trust, set up as part of a will and in effect upon your death.
Life insurance trust, established to own a life insurance policy, generally used to transfer life insurance proceeds to a beneficiary free of estate tax, and irrevocable.
Credit shelter trust, used by a married couple to take advantage of both spouses' credits against the federal estate tax.

The Pleasanton trusts lawyers of Beverly M. Hoey can help you select the type of trust that is most appropriate for your circumstances.

Living trusts for managing wealth

One of the most useful types of trusts is a living trust, designed in conjunction with a Pleasanton trust lawyer to manage your assets in the event you become disabled or incapacitated. These trusts can also be used for current management of your wealth—even when you are competent and healthy but have little experience handling money and prefer to have a professional handle your finances. For example, a widow who has just received a large inheritance could create a living trust and name a bank, a financial planner, or a Pleasanton trusts lawyer at our firm as the trustee. The trustee would then invest the inheritance for the widow's benefit and handle her financial affairs. One important aspect of such an arrangement is that the trustees are governed by well-settled legal principles that require them to exercise a high degree of care in managing the assets of the trust. Failure to do so can result in criminal prosecution.

When a trust cannot be used to protect assets

The Pleasanton trust attorneys of Beverly M. Hoey stand ready to help you protect your assets with a trust—but warn that there are circumstances where a trust created for this purpose may be deemed fraudulent. If you have already incurred a debt, are contemplating filing for bankruptcy, or know that you are going to be sued, you cannot use a trust to protect assets that otherwise are due to be surrendered.