California Trusts that Protect Families & Save Taxes

Competent, Caring Help for Trusts to Protect Families and Children

San Diego Law Firm takes pride in creating the best possible specialized trusts to protect families and children from financial losses, money mismanagement, and claims by creditors. Our skilled, experienced lawyers can evaluate your personal situation and advise you what types of trusts would provide the maximum benefit and protection for the people you care about. From our San Diego, California law offices, we handle all types of trusts throughout California, including Riverside, Imperial, Los Angeles, and all southern California.

Special Needs Trust for Disabled Child or Adult

A special needs trust is an important way to provide for a disabled child or adult. This trust lets a disabled person keep their government benefits while receiving money for expenses the government does not cover: good dental care, education, grooming aids, clothing, books, and more.

Special needs trusts are usually set up to start functioning while parents or other caretakers are still living. The trust can hold a life insurance policy that pays funds into it when the parents pass on, and other relatives can leave money to the trust for the disabled person without jeopardizing the disabled person's government benefits. Survivor benefits from pensions, Keogh's, and IRA's, and military benefits payable under a Survivor Benefit Option election can also be set up to pay into the trust. San Diego Law Firm can prepare all the appropriate legal documents for you.

Grantor Trust to Minimize Gift Tax on Transfer to Family

A grantor retained annuity trust allows a person to irrevocably transfer property to the trust, receive a set amount of income either for life or for a set number of years, and then pass the property to the heirs. The property is subject to gift tax; if the trust was for a set period of years and the grantor passes away before it is up, the property is subject to estate tax. However, the gift tax is discounted because of the grantor's retained interest, making it a good estate planning device for larger estates. A grantor retained unitrust is similar, but the amount of income can fluctuate annually. Grantor trusts are often used to transfer a closely held business to heirs. They are legally complicated and must be carefully prepared by an experienced attorney.

Personal Residence Trust to Minimize Gift Tax on Transfer to Family

A qualified personal residence trust is an irrevocable trust used to minimize gift tax and avoid estate tax on the transfer of a personal residence to relatives. The grantor transfers his or her residence to the trust, retaining the right to use the property for a period of years. The transfer is subject to gift tax and not estate tax, unless the grantor dies during the period of years, and the amount of the gift is discounted to reflect the grantor's retained interest. At the end of the period of years, the relative receives the property. If the grantor still wants to live there, he or she usually rents the property from the relative. The gift tax is paid on the residence at the time it is put into the trust, and later appreciation escapes gift tax. Again, knowledgeable attorneys, such as those at San Diego Law Firm, are essential to properly prepare the trust.

Life Insurance Trust to Pay Probate Expenses, Protect Family Business

An irrevocable life insurance trust holds a life insurance policy that pays its proceeds upon the grantor's death. If properly created, it is not subject to probate. The proceeds can be used to pay estate taxes and estate administration expenses, and the balance can then be transferred to the heirs. It is a useful way to make sure your heirs do not have to sell an ongoing family business, rental property, or other operation to pay estate taxes. Our attorneys can prepare an appropriate life insurance trust for you and advise you on all the details.

Qualified Domestic Trust Gives Saves Estate Taxes for Non-Citizen Spouse

A surviving spouses who is not a U.S. citizen loses protection of the marital deduction from estate taxes, unless the property passes into a "qualified domestic trust" (QDOT) that complies with various tax rules. The QDOT is often coupled with planned gifts made while both spouses are still living, to make sure the non-citizen spouse is left with adequate support.

Other Trusts

A complete estate plan will include a living trust and may include one or more specialized trusts. We can create all of the trusts listed above, and numerous others. If you would like San Diego Law Firm to evaluate your particular situation, please call us for an appointment. Although our offices are based in California, we handle cases in other states in association with other skilled attorneys, as provided by law.

How to Contact Us

For more information or an appointment, please call San Diego Law Firm at 619-794-0243, or, if you prefer, send us an e-mail at and an attorney from our office will contact you. Please note that making a phone call or sending an e-mail does not create an attorney-client relationship; this requires a written agreement. Please do not e-mail any confidential information to us until an agreement is signed; at that point, we can exchange confidential information freely.