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Law Offices of Rozsa Gyene

ABOUT ROZSA GYENE Rozsa Gyene is an attorney, a Doctorate in  Law since 1997 and received her J.D from Southwestern Law School. The lawyer Rozsa Gyene owns the Law Office of Rozsa Gyene firm, located in Glendale, California since 20 years. She and her team are experts in family, living and special needs trusts, as well as trust administration, wills, probate, decedent estates, estate planning, conservatorship and guardianship. They focus on making sure that your loved ones will receive what you have worked so hard to accumulate, offering brilliant legal solutions.

REASONS TO HAVE A FAMILY TRUSTThere are many reasons to have a family trust, the main one is to protect the family assets. You can simply shift the ownership of some assets to a trust to make sure that those assets will not be at risk while you venture on new risky investment or business. The most common reason is to be certain that  assets will be transferred intact to the next generation after someone’s death. Another reason is to manage the possessions of someone who is not able to manage their own affairs because of age, infirmity or any other motive. Additional to that, you can also change tax liability by putting your assets in a trust.

ROZSA GYENE ABOUT MATRIMONIAL LAW AND OTHER ATTORNEYS AT LAW

Mission StatementA beneficiary in the broadest sense is a natural person or other legal

entity who receives money or other benefits from a benefactor.

WHO SHOULD BE INVOLVEDAt least three people should be involved:-       The settlor is the person or group of people that will transfer the assets, that can be as little as $1.-      an individual person or member of a board given control or powers

of administration of property in trust with a legal obligation to administer it solely for the purposes specified. If the settlor decides he can be a trustee of his own trust, the trustees have the responsibility to take care in a prudent way of the assets subject to the trust, unless it says otherwise. In many cases trustees are  family members, lawyers or business persons that are related to the assets or the beneficiaries.

-  A beneficiary in the broadest sense is a natural person or other legal entity who receives money or other benefits from a benefactor. It can be one or a group of people that can be divided in two types of beneficiaries: a discretionary beneficiaries (they don’t have an automatic right to receive payments from the trust, but if the trustee decide they can be considered for payments) and final or ultimate beneficiaries (have the legal right to the trust property, their names often appears on the trust, being often the settlor's children or grandchildren).

WHAT ARE TRUST DATES?

The family trusts cannot exist for more than 80 years and need to have a finish date  known as the date of distribution. The trust has a beginning date and a due date, the trustees can have the power to end the trust before the date or to extend the distribution date.

THE WORK OF THE TRUSTEESBesides the power to change the distribution date, trustees also  have the power to appoint new trustees, more rarely they can also have the power to remove trustees.  Frequently this power is given to the settlor. His main job is to protect the will of the settlor and its assets.

A TRUST OPERATES AS AN INDIVIDUAL

A family trust can have properties, bank accounts, raise mortgages and it is usual to hold all types of assets and investments. Of course all the assets and investments need to be according to the powers agreed in the trust deed, just as the addiction and selling of assets inside the trust. The addiction of assets can be done at any time, usually by the settlor, who will sell assets to the trust, however sometimes the trust itself will buy assets. If the trust do not own money to buy a new asset, the trustees intervene and sign a document recognizing that the trust owes the seller for the asset acquired.

HOW TO REDUCE THE DEBT OF A TRUST?There are two ways to reduce the amount the trust owes to the settlor. In the first option the settlor cancels the debt. This can only be done in sums up to $27,000 per year, without gift duty, if the sum is higher than that there is a gift duty calculated on a sliding scale. The second option is the trust make payments to the settlor, taking money out of its income or out of capital.

YOU CAN HAVE MORE THAN ONE TRUSTCall cross trusts or mirror trusts, are two trusts that are involved with each other. The most common case is when the first spouse establish a family trust with the second spouse as its beneficiary, and then the second spouse does the same with the first spouse being a beneficiary. It is done with the objective of giving control to each spouse without having to involve directly with the other spouse as a co-trustee. In that case each settlor can sell assets to his or her trust for full value.

PAYMENTS OUT OF THE TRUSTWho decides which payments from income

or capital are to be made are the trustees, they also decide which beneficiaries shall receive them. If the trust owns to the settlor, he can demand payment of all or a part of the debt at any time. This type of payments, from trust to settlor, can be free from income tax.

CONTACT

Rozsa Gyene, Attorneys at Law450 N. Brand Blvd. Suite 600Glendal

CA 91203-2349Phone - 818-434-4541