Understanding Testamentary Trusts
Good morning, San Diego and welcome back to our legal segment. Today we have the pleasure of speaking with Steve Bliss, a well-respected San Diego Probate Attorney. Steve, thank you for joining us.
Steve, many people are unfamiliar with the various types of trusts available in estate planning. Could you explain what a testamentary trust is and how it differs from other types of trusts?
Steve’s Explanation
Certainly. A testamentary trust is unique because it’s created through your last will and testament and only comes into existence upon your passing. Unlike a living trust, which avoids probate, a testamentary trust goes through the probate process.
Consequently, while it might seem counterintuitive to use a trust that involves probate, there are compelling reasons why someone might choose a testamentary trust. One common scenario is when you have minor children or beneficiaries who require ongoing financial support but lack the maturity or capacity to manage their inheritance responsibly.
Moreover, testamentary trusts offer flexibility in terms of distribution. You can specify exactly how and when funds are disbursed to your beneficiaries, ensuring they receive the necessary support without access to a large lump sum that might be unwisely spent.
Conversely, a revocable living trust allows you to manage and change the trust during your lifetime. But upon your death, it becomes irrevocable. A testamentary trust offers that same level of control but kicks in only after your passing.
Challenges Faced
Have you encountered any particular challenges when setting up or administering testamentary trusts?
There was a time when I worked with a young couple who tragically passed away within a short span, leaving behind their two teenage daughters. Their will stipulated the creation of a testamentary trust to provide for their children’s education and living expenses until they reached adulthood. The complexity arose from ensuring the funds were sufficient to cover rising college costs while also providing for their daily needs.
We carefully analyzed their assets, projected future expenses, and consulted with financial advisors to craft a sustainable investment strategy for the trust. Ultimately, we were able to secure their daughters’ futures despite the heartbreaking circumstances.
Trusts and Estate Planning
It’s clear that testamentary trusts can play a vital role in estate planning. According to the American Bar Association, nearly 60% of adults do not have a will or trust in place.
This highlights the importance of seeking legal guidance from an experienced probate attorney like yourself. Steve, what advice would you give to our viewers regarding estate planning?
Call To Action
Estate planning can seem daunting, but it’s crucial for protecting your loved ones and ensuring your wishes are carried out. Our team at San Diego Probate Law is dedicated to providing compassionate and knowledgeable guidance throughout the process. We believe everyone deserves peace of mind knowing their affairs are in order. Contact us today for a confidential consultation.
Testimonials
“Steve Bliss and his team were incredibly supportive during a difficult time. They explained everything clearly and made sure I understood all my options.” – Maria S.
“I highly recommend San Diego Probate Law. Their expertise and professionalism were invaluable in settling my father’s estate.” – John P.
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: “What happens if all beneficiaries die before me?” Or any other related questions that you may have about Trusts or my trust law practice.
Important Facts About San Diego Probate Law
- Special Needs Trust Attorneys
- Spendthrift Trust Attorneys
- Tax By-Pass Trust Attorneys
- Totten Trust Attorneys
- Constructive Trust Attorneys
- Charitable Trust Attorneys
- Asset Protection Trust Attorneys
- Irrevocable Trust Attorneys
- Revocable Trusts Attorneys
- Living Trust Attorneys