Estate planning is necessary if a person wishes to distribute their assets in an efficient manner. A trust is a valuable estate planning tool for a person that wishes to provide for another person or entity. Understanding California’s state and federal laws can help when establishing a trust. If you require legal assistance to create a trust in California, you should consult with an experienced California trust administration lawyer as soon as possible. At the NewPoint Law Group, LLP, we are dedicated to providing you with legal representation you need to manage your estate planning goals. Our firm understands that starting a trust can be a complex process, and we are here to guide you through it. The NewPoint Law Group, LLP is here to explain what a California trust can accomplish.
Types of Trusts in California
If you wish to provide for a family member, friend, or even a legal entity, establishing a trust is one of the ways you can accomplish your goal. There are various types of trusts that can be established based on the needs of the creator of the trust. Living trusts are the most commonly used form of trust.
A living trust is a legal document that allows the creator of the trust to transfer ownership of their assets to a beneficiary. The creator of the trust, also known as the grantor, is responsible for appointing a trustee to manage the trust. However, it is possible for the creator of the trust to also serve as the trustee.
There are two categories of living trusts: revocable trusts and irrevocable trusts. A revocable trust is often used because it allows the grantor to make adjustments to the trust like removing property or altering beneficiaries. The grantor of a revocable trust will be able to modify the trust in accordance with the needs of the beneficiaries.
Irrevocable trusts are more rigid as the trustee cannot remove property or beneficiaries after they have been added to the trust. For example, if the trustee places real estate in the trust and later decides to remove it, they will be unable to reclaim the estate from an irrevocable trust. However, there is one exception to make changes to an irrevocable trust; all the members of the trust must consent to changes made to the trust.
To learn more about creating a trust in California, you should continue reading and speak with an experienced Sacramento wills and trusts lawyer today.
How to Establish a Trust in California
There are a number of factors that can highlight the benefit of establishing a trust in California. For example, establishing a trust will allow beneficiaries of the trust to the lengthy and expensive probate process in California after the death of the grantor. Additionally, as California has not adopted the Uniform Probate Code, this can make the process much more complex. Our firm can help you determine your options when creating a trust. There are various steps that must be taken for a person to create a trust for the benefit of others. Our firm can also help guide you through these steps to ensure your needs are met.
Select a Type of Trust
There are some factors that should be considered before you select the type of trust you wish to establish. For example, if the creator of the trust is married, they should determine whether they want to establish a single or joint trust. A single trust will only allow a married individual to include property they solely own. A joint trust will permit a married couple to transfer jointly owned property and property that is owned by only one spouse.
Assess Property for the Trust
Before transferring property and other assets into the trust, you should take inventory of all the assets you may want to transfer. For example, if you wish to place real estate in the trust for a beneficiary, you should ensure that you have the title to the property.
Choose Trustees and Beneficiaries
As mentioned, the grantor of the trust should elect a trustee to manage the trust. If you are not serving as the trustee, you should ensure that your representative is trustworthy and will act in the best interest of a beneficiary. The grantor should also consider naming replacement trustees in the event that a trustee passes away.
At this point, you should also select beneficiaries for the trust. As mentioned, beneficiaries of a trust can be a family member or even a legal entity. If you wish to provide for a particular person, a trust is a reliable method to accomplish your goal.
Sign the Trust Document
The grantor of the trust is also required to sign the legal document that establishes the trust. This document should be signed with a notary public to witness the signing.
Work with Our Experienced California Trusts Lawyer Today to Discuss Your Estate Planning Needs
If you need legal assistance to create a trust in California, you should consult with an experienced California trust litigation attorney as soon as possible. The legal team at the NewPoint Law Group, LLP possess decades of combined legal experience, and we would be honored to use our knowledge to represent your interests. To schedule a confidential consultation to discuss your estate planning needs, contact the NewPoint Law Group, LLP at 800-358-0305. You can also contact the firm using our online submission form.