California Trusts FAQ
What is a Trust?
There are different types of trusts designed for various situations, like:
- Revocable trusts
- Irrevocable trusts
- Charitable trusts
- Special Needs Planning
- Spendthrift trusts
- Testamentary trusts
- Gun trusts
Trusts can be very specific, or they can be broad. People opt for different ones to satisfy different purposes.
When Do I Need a Trust in California?
Inheritance
Special Needs Family Member
Privacy Matters
What are the Benefits of a Trust in Los Angeles?
Benefits of a trust vary, but can include:
- Keeping certain assets judgment-proof
- Providing income to a special needs family member without having that income render them unable to receive public assistance
- Tax benefits
- Ability to avoid the probate process
There may be other benefits available to you depending on the circumstances of your situation.
What are the Disadvantages of a Trust in Los Angeles?
Some trusts are irrevocable, meaning that once created, the trustor is unable to change the terms of or revoke the trust in its entirety. This loss of control is a huge disadvantage to many. That said, the trust may still be terminated, but it can be a lengthy process involving all parties to the trust.
Fortunately, it is possible to create revocable trusts (trusts that can be changed), but these types of trusts vary in the purpose that may not reflect the reason you created an irrevocable trust.
How Do I Terminate or Modify a Trust in California?
If I Make a Trust in California, Do I Still Need a Will?
A Will is always a good idea. It may seem confusing to need a Will and a trust, but reasons exist to have both, even though the Will may never be used. Here are two important reasons:
- Guardian for minor children. You cannot name a guardian for minor children in a trust. So if you have children under the age of 18 years, you should designate a guardian in a Will.
- Property not transferred to the trust. Trusts are created all the time, and trustors often forget to transfer assets they obtain after creating the trust. If this property is not in the trust, it will not be disbursed by the trust but through probate. A Will helps ensure everything goes where it’s intended and is not challenged in probate court.
How Much will Setting Up a Trust Cost?
Do I Need a Trusts Attorney in California?
For more a trust with many assets, multiple beneficiaries, and/or complex instructions, it is always advisable to have an attorney draft, review, and execute it. The laws can get confusing. Plus, anytime you deal with finances, it’s always good to have someone with experience follow up. Also, we can help you:
- Choose an appropriate trustee
- Update documents as needed and when appropriate
- Avoid probate
- Protect assets
- Achieve estate planning goals
Contact a Trust Lawyer in Los Angeles Today
At LA | Estate Plans, our trusts attorney in California will help identify what trust works best in your unique circumstances. There are many types of trusts that can be created to suit your needs, and each has their benefits and disadvantages. We can help you weigh the pros and cons against what your specific needs are. Schedule Your Peace of Mind Planning Session to learn what type of trust can complement your estate plan today.