Trusts separate income from principal, allowing the trust instructions to distinguish between the two. This means that the trustor can instruct the fiduciary to distribute all income from the trust to a specific person and only distribute principal in certain circumstances, such as medical emergencies. This would prevent the trust from diminishing due to excessive withdrawals, ensuring that it will provide income for the rest of the beneficiary's life.
California residents who are interested in planning an estate may have questions about incorporating a trust into their preparations. Knowing what trusts are available and which ones work best in certain circumstances makes the choice easier.
California residents often incorporate trusts into their estate plans. Contrary to some popular myths, trusts may have significant value during the life of the grantor, they do not require as much work to create as people might think and they can be useful for those of limited financial means.
A recent article outlines several factors that families in California may want to take into account when considering leaving money in a trust for future generations. The suggestions in the article vary in their approaches while generally working toward the common goal of helping individuals with fortunes protect their heirs from throwing away the wealth they inherit.
The Disney name is synonymous with fun and good times with family. But the Disney family itself is going through a tough time, as two of its members meet in court today to begin the legal process of settling a dispute over a $400 million trust.