Michael Carter-Williams and Why Setting-up a Trust is Something You Should Also Consider
By: Tilden Moschetti
Remember that each estate plan is unique. It will all depend on your circumstance and goals. Are you planning to protect the inheritance you will leave to your surviving spouse, children, or grandchildren when you pass away? Are you trying to avoid the burden of potentially large estate taxes on you or your loved ones? Or do you intend to protect your estate assets from creditors, a future divorcing spouse, or lawsuits?
Keep in mind that estate planning documents are not a one-size-fits-all product. With the multitude of planning options available, an experienced Calabasas estate planning lawyer can help you draft a plan that will provide for both what you need today and for the future. It is important to take into account your priorities, and things that may not seem important at first but are.
– Carter-Williams and maximizing this estate planning tool
Why people decide to set up a revocable living trust
The first thing to be done to set up a trust is appointing a trustee, who will be managing and administering the personal property and estate of the grantor. A loved one, a trust company, or even grantors themselves can be appointed as trustees.
Drafting living trust documents and setting up a revocable trust (which is the opposite of an irrevocable trust) will be beneficial both to your trust beneficiaries and to you, during your lifetime. When you create a trust, any bank account, investment, real property, or other property in trust is no longer ‘yours’. Following relevant state law, they are owned by the trust account, both while you are still living and when you die.
Aside from the fact that income from trust assets, remains yours throughout the remainder of your life, you also keep a certain level of control over trust property. Under relevant trust law, a living trust you create may be revoked or amended during your lifetime. An experienced Calabasas estate planning lawyer can explain in detail the revocability and flexibility of these legal documents.
When is it ideal to set up a trust?
An individual who creates a trust could decide on naming guardians for minor children while he or she is still alive. The trustee you appointed could make decisions for you if you become disabled or incapacitated and could manage financial affairs without the need for a durable power of attorney. Under relevant trusts law, a professional trustee who will carry out the instructions and manage your trust estate can limit withdrawals to only income and emergencies.
When you create a trust, the beneficiary of a trust can maintain his or her privacy and keep private records and information on possible probate estate. Keep in mind that when a last will and testament is subject to the probate code, the legal document involved becomes part of public records. Maintaining privacy can be quite difficult. Additionally, last wills and testaments could lead to disputes between heirs you decided to appoint. It is not uncommon for a family member to try to contest a will for questionable validity, alleged undue influence, or supposed lack of testamentary capacity.
If you established a trust, the probate process is generally not applicable. Since assets of the deceased person are owned by the trust and not by the decedent, the estate planning document need not be brought to court and probated. Transferring property through the probate court can be quite complicated, and revocable living trusts enable you to avoid probate costs and related proceedings. Get supervision from competent Calabasas estate planning attorneys.
Looking Into the Experiences of Carter-Williams
In 2013, Michael Carter-Williams made headlines when he decided to set up an irrevocable trust and place in it his salary as a former player of the Philadelphia 76ers. The trust is to be managed by a close friend and his mother. Under the terms of the trust, Carter-Williams would not be able to access the money for three years, during which he would be living off his endorsement deals.
This was quite unexpected since Carter-Williams did not have a family of his own to support, was relatively young, and did not have issues with creditors. While it was unexpected, however, it was positively regarded as a thoughtful financial decision. While specific details of the trust are not known, it was a good move given what was happening in the sports industry at the time. With proper management, the trust can provide Carter-Williams a stable source of income whenever he may need it.
Proceeding with your plan to you establish a trust is ideal in many ways. Setting up a trust is not only helpful in avoiding probate and the related legal process. In terms of estate administration, creating a trust can make things a lot simpler for your trust beneficiary. Provisions in the trust can also allow for a transfer of wealth through a credit shelter trust, which shall be established after death.
At Moschetti Law Group, our practice serves the needs of Founders by providing real estate law and real estate syndication attorney services to Founders. Whether you are the Founder of a real estate empire or building a business and need assistance with purchase and sales, real estate transactions, or real estate litigation, we serve Los Angeles County, eastern Ventura County, and North Orange County from our office in Calabasas. We also have a primary focus on helping Real Estate Syndication Founders throughout the United States with forming their syndication, understanding crowdfunding, private placement memorandums, and operating agreements.