Property Trusts
The Sole and Separate Property Trust, hereafter S&SP Trust, are a significant planning device in four situations among clients. Our property trust attorney provides the best legal in San Diego.
1. Younger Clients: These Trusts are recommended for younger clients, pre-marriage. By their designation, they identify sole and separate property. They don’t replace a Pre-Marital Agreement but go along way in carrying out the intent of the owner in retaining the characteristics of sole and separate property when entering a marriage.
2. Divorced Client: Under California law, Trusts entered into during marriage are revoked by law on divorce. After the divorce we recommend that an individual create their own S&SP Trust for the assets awarded to them in the Final Divorce Decree. As a result, the assets will be titled as such should the individual enter a second marriage. Most divorced spouses truly understand the benefits of utilizing a S&SP Trust having experienced the rigors of a divorce action.
3. Asset Protection: Some spouses who are in marriages with spouses who are targets for lawsuits (doctors, architects, construction, owners, attorneys, etc.) chose to arrange a S&SP Trust in addition to the Family/Living Trust . If properly arranged, these Trusts can protect certain separate property from lawsuits against their spouse. This is especially true if a spouse receives a significant inheritance which may be utilized for financial security in later years.
4. The S&SP Trust is a device I utilize in my Protective Inheritance Trust (PIT) provisions of the Family/Living Trust . It is primarily utilized to protect a child’s inheritance from divorce proceedings and lawsuits against his/her spouse as indicated in paragraph 3 above.
