Folsom Trust Administration Attorney

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When a person dies, this event can not only be devastating for their family but also lead to significant legal challenges for them. Depending on the type of estate plan the deceased had in place at the time of their death, there are many possible options as to how these legal matters will unfold. Trusts are common in the United States because these documents can significantly reduce the time, stress, and expense required of handling a deceased loved one’s affairs. It’s essential to understand what a trust is and what to expect from trust administration if you have recently lost a relative who had a legally sound trust in place at the time of their death.

At McCunn Law, we strive to provide every client with confidence and clarity as they approach the trust administration process. As your Folsom trust administration lawyer, Attorney Drummond T. McCunn will help you understand the legal processes you must undertake for successful trust administration. Our team will clarify the legal statutes that are likely to come into play and help you approach this difficult legal process with more confidence.

Folsom Trust Administration Lawyer You Can Trust Call (916) 827-3427

What Is an Administration Trust?

Administrative trust is one of two options for approaching the trust administration in California, the other being the pass-through method. The legal process of trust administration is, by its very nature, a taxable event. Any income produced by assets contained with the trust qualifies for taxation. It is essential to quickly decide how to handle the reporting of income that continues to accrue during this period. If the deceased had configured any marital, bypass, or children’s sub-trusts, all trust income is taxable under these sub-trusts or the beneficiaries starting on the date of death.

If the estate is too small or projected funding is slated to occur within the same calendar year, the pass-through approach can save a significant amount of time and expense. The other option is the administrative trust approach, which treats the trust estate as a completely separate taxpayer. This will require the creation of a new taxpayer identification number and the filing of a 1041 fiduciary tax return for the administrative trust. This may require more work, but it will prevent tax liability for income accrued by the trust from falling to beneficiaries.

Why Do I Need a Lawyer?

A trust can provide peace of mind and clarity to a family following their loved one’s death, but navigating trust administration and other probate proceedings without an attorney can be incredibly challenging. Any mistakes with the paperwork and documentation you must submit can lead to significant delays in your trust administration process. Hiring a Folsom trust administration attorney can significantly improve your experience with this entire process. Instead of attempting to navigate the complex legal processes of trust administration while mourning the loss of a loved one, your Folsom trust administration lawyer can lighten the burden and help your loved ones handle this difficult situation with greater clarity and confidence.

How Do I Find a Good Trust Attorney?

If you plan to hire legal representation to assist with trust administration, it is essential to know how to find the best Folsom trust administration lawyer for your particular case. You can begin your search by looking for recommendations from friends, relatives, and neighbors if they have recently undergone the trust administration process. Take advantage of free consultation offers and narrow down your list of prospective legal teams until you find the Folsom trust administration attorney who is right for you.

While time is a critical factor in trust administration, it is essential to take the time necessary to find a suitable attorney. The Folsom trust administration lawyer you choose should have a solid record of successful cases behind them, a clear understanding of trust administration, and the ability to connect you with resources that will enable a much smoother trust administration process.

At McCunn Law, our practice is focused on enabling positive outcomes for our clients in every possible situation. We understand the complexities of trust administration and help our clients make informed choices that enable long-term success and stability. If you are bracing for the legal affairs you must address following the death of a loved one, Attorney Drummond McCunn is ready to act as your Folsom trust administration attorney to help you and your loved ones conclude the affair as efficiently as possible.

What Do Folsom Trust Administration Attorneys Do?

A Folsom trust administration attorney can provide several important services related to trusts. First of all, you will need to work with a trust attorney to develop a trust for yourself. They will assist with all phases of the process to ensure your trust is legally enforceable, comprehensive, and suitable for you and your family’s needs.

One of the most important functions of your Folsom trust administration attorney during trust creation is the designation of your trustee, or the person who will obtain control over your trust after your death. Many people appoint their spouses, grown children, or other close relatives as their trustees. However, it is also possible to appoint your Folsom trust administration attorney as your trustee. This can be beneficial if the trust you are creating is highly complex, involves difficult financial issues, and potential for dispute among beneficiaries.

During the phases of trust administration, your Folsom trust administration lawyer will perform several important functions that will ensure your trust is handled legally and accurately. Your attorney must conduct a thorough valuation of assets to ensure all included properties and assets within the trust are correctly cataloged. They must also disclose all material facts related to the trust.

A Folsom trust administration attorney has several legal duties they must fulfill to create and handle a trust. They must be neutral and objective in the interpretation and representation of all material facts. They also hold a fiduciary duty to the owner of the trust and the designated trustee to ensure a legal transfer of trust contents upon the death of the creator of the trust. Should you choose to develop your own trust, it is essential to hire an attorney you can trust.

Is a Trust a Good Idea?

Creating a trust with the help of a Folsom trust administration lawyer is one of the best ways to safeguard your family’s future after your death. Creating a trust is one of the best legal ways of ensuring your family can avoid the probate process, a lengthy and stressful procedure of legally transferring the assets of a deceased individual to his or her beneficiaries according to state law. When you create a trust, you are essentially forming the blueprint of what you wish to happen with your assets and property after your death.

A living trust may not be beneficial to an individual who does not own substantial assets, but for anyone who has a significant number of properties and assets, a living trust can be an incredible asset. Under a living trust, the ownership rights over the contents of the trust automatically pass to the trustee at the time of death. The trustee may then distribute the contents of the trust to the deceased’s beneficiaries according to the deceased’s instructions.

It is possible to avoid the need for a living trust if you assign joint ownership to someone else prior to your death. Essentially, all jointly-owned property will become the other owner’s sole property after your death. Depending on the level of personal trust between the two parties, this can be an effective system for avoiding probate and ensuring appropriate distribution of assets. This system is also effective when two people, usually a couple, are one another’s sole beneficiaries.

What Can a Living Trust Include?

You can create many different types of estate plans, and a living trust is typically just one of several formal documents included in a comprehensive estate plan. It’s vital to remember that a living trust pertains solely to property ownership rights. Some of the assets your living trust can include are:

  • Your home and investment properties. Real estate can qualify for inclusion in your living trust even if you are still paying a mortgage. If you jointly own your real estate with your spouse or another party, you may not need to include it in your trust. However, it is a good idea to contact the lender to notify them about this arrangement.
  • Stocks, bonds, and securities accounts held by brokerages. In some cases, it may be beneficial to name a Transfer on Death beneficiary on these accounts instead of including them in your trust to streamline the distribution of your assets.
  • Small business interests. This can include any stock in a corporation, limited liability company, or partnership. Jointly-held small business interests will likely pass to their joint owners. If you do not have a joint-ownership agreement or a living trust that includes your small business interests, the executor of your estate must continue to run your business under court supervision. This may significantly delay the probate process.
  • Patents and copyrights that you own.
  • Precious metals. Many Americans invest in gold, silver, and other precious metals.
  • Valuable collectibles, including expensive or limited-edition memorabilia, stamps, rare coins, and other objects.
  • Artwork and antiques.

These are the most important assets that you should include in your living trust. It is also vital to remember that it is perfectly legal to add more assets to your trust in the future. While this document can have an enormous impact and prevent your family from dealing with overly complex probate proceedings, there are some things that your living trust cannot contain.

What Can’t I Include in a Living Trust?

Living trusts exist to ensure your property and assets transfer smoothly upon your death, but some assets are not eligible for inclusion in a living trust. Your Folsom trust administration attorney can advise you on specific details that pertain to your unique estate. Some of the things you cannot list in your living trust include:

  • 401(k) accounts.
  • 403(b) accounts.
  • IRA accounts.
  • Qualified annuities.
  • Uniform Transfers to Minor Accounts and Uniform Gifts to Minor Accounts.
  • Life insurance accounts.
  • Vehicles. In some cases, transferring ownership of a vehicle to a trust qualifies as a sale and can entail transfer tax.

In addition to these exclusions, you may not include designations for guardianship of your children or any other terms related to child custody in your trust. You must create a will to outline your wishes pertaining to these issues, and your Folsom trust administration attorney will guide you through the process of forming the other documents you need to accompany your trust to generate a comprehensive estate plan.

Revocable vs. Irrevocable Trusts

If you are deciding how to develop your estate plan, you must understand the differences between revocable and irrevocable trusts and determine your main motivations for creating your trust. A revocable or living trust allows you to revoke ownership of the trust’s contents from the trustee at any time. The owner of a revocable trust may designate new beneficiaries or remove existing beneficiaries as well as modify the handling of assets included in the trust. Assets in a revocable trust are not shielded from creditors, and the assets included in the trust become subject to taxes upon the death of the owner of the trust.

An irrevocable trust is more suitable for those who are concerned about cognitive decline or impairment in old age. The terms, conditions, contents, and beneficiary designations in an irrevocable trust cannot be changed; they are legally set in stone once the irrevocable trust is signed. While this may sound severe, the tradeoff is that the contents of the trust are no longer part of the owner’s taxable estate and not subject to estate tax upon their death.

Find Reliable Legal Counsel for Your Trust

Trusts are effective legal mechanisms that can save you and your family a great deal of stress, uncertainty, and time upon your death. A comprehensive estate plan should include a trust, but it may be difficult for you to determine what type of trust you need and what it should include without professional legal assistance.

The team at McCunn Law is ready and able to help you secure your family’s future and provide peace of mind. Contact us today for more information about how a Folsom trust administration attorney can help you develop the most effective estate plan for your needs.

Why Contact McCunn Law?

Our methods for handling business owner divorce and family law issues are unique. We offer legal assistance for a range of family law cases, including:

Mr. McCunn specializes in a holistic, project management approach which empowers you to make your own decisions throughout the process. He has a reputation as a peacemaker and his honest and pragmatic attitude towards divorce and other family law issues ensures you only pay for the services you need during your case.

“McCunn Law is a high-quality and highly knowledgeable legal team. I went into a consultation regarding child custody and was extremely happy with the plan and ultimately the results of my case. They create a plan with the client’s needs and wants in mind. Drummond is also great working with regarding what kind of budget a client would be able to afford. If I have any more legal needs in the future this is the office I will use every time.”

Megan P.

“McCunn Law is a high-quality and highly knowledgeable legal team. I went into a consultation regarding child custody and was extremely happy with the plan and ultimately the results of my case. They create a plan with the client’s needs and wants in mind. Drummond is also great working with regarding what kind of budget a client would be able to afford. If I have any more legal needs in the future this is the office I will use every time.”

Megan P.

“McCunn Law is a high-quality and highly knowledgeable legal team. I went into a consultation regarding child custody and was extremely happy with the plan and ultimately the results of my case. They create a plan with the client’s needs and wants in mind. Drummond is also great working with regarding what kind of budget a client would be able to afford. If I have any more legal needs in the future this is the office I will use every time.”

Megan P.