So you recently found out that you have been named trustee to a loved one's trust. You don't think this is a big deal and that trust administration just means having your name on a legal document. However, this idea is absolutely incorrect.
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.
As is the case with many California residents, your pet has a special place in your life and relies on you for all of its needs. Perhaps you have wondered what would happen to your pet if you were to pass away with no one to care for it. There is a solution whereby your pet can continue to receive proper care after your death. As part of your estate planning, our attorneys can assist you in drawing up a pet trust fund in which you set aside finances for the complete care of your dog or cat.
Revocable living trusts are quite popular for many people in estate planning. These trusts are set up and operate while the grantor is still alive and can help avoid probate court after the grantor dies.
California residents who wish to donate their estate to a charity may be interested in learning how a charitable trust works and how it may benefit them. Charitable trusts, as outlined in the Internal Revenue Code, are non-exempt trusts exclusively made for charitable interests and that are entitled to a charitable contribution deduction allowance. Unless charitable trusts meet the qualifications of a public charity status, the IRS considers charitable trusts to be private foundations.
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.
Many individuals sometimes make the mistake of relying solely on wills or not doing estate planning at all. Wills are subject to probate and therefore the attendant public scrutiny of court documents. By setting up a revocable trust, actor and California resident Robin Williams prevented his family from having to deal with probate, which can be a long and unpleasant process. The terms of trusts can be kept private as well as any challenges or disagreements.
Residents of California nearing the age of retirement may be wondering how they should arrange for their property and assets to be passed on in the event that something happens to them. A revocable trust may be a good way for individuals to provide for the distribution of their assets in the event that they become incapacitated, and the trust may even make it easier for those people to draft their wills.
Many California residents consider trusts to be an essential part of their estate plans. Trusts allow people to set the terms of how money should be spent by the beneficiaries, as well as appoint someone to oversee the assets, which can be an attractive option when children are the beneficiaries. In many cases, trusts are the only way to achieve what people envision for inheritances they leave behind.
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.