Proper Trust Planning For California Families
After you pass away, all your property, assets, and wealth will be divided and distributed to your beneficiaries. Many people know they need a will, but in most cases a will alone is not enough especially if they own real estate. Most people need a will and a trust that work together.
At my firm — the Law Office of Barbara J. Dibble — I help clients throughout Fullerton and Orange County, California, using trusts and other estate planning tools. I take the time to understand my clients’ situations and the factors that will affect their trusts. Contact me online or call 714-515-5126 to schedule your free initial consultation.
What Trust Will Best Meet Your Financial Goals?
I help clients create a trust tailored to their family’s needs. When used effectively, a revocable trust allows you to:
- Control your assets while you are alive
- Avoid probate
- Reduce or eliminate potential estate tax
- Leave detailed instructions for money left to children or left for the care of minor children
- Avoid having a conservator appointed to control your assets if you become incapacitated
As a Fullerton, California, revocable trust attorney, I work with clients to create detailed instructions, dictating exactly what should happen with their assets and when. I discuss the big picture with my clients, looking at estate tax issues and the long-term ramifications of each option.
Frequently Asked Questions About California Trusts
Estate planning raises important questions about protecting assets and providing for loved ones. Here are answers to common questions about trusts in California based on decades of experience helping families plan for the future:
What are the different types of trusts?
California recognizes several trust types that serve different purposes. Revocable living trusts allow control of assets during life while avoiding probate after death. Irrevocable trusts permanently transfer assets to protect them from creditors or reduce estate taxes. Special needs trusts provide for disabled beneficiaries without affecting their government benefits. Charitable trusts benefit both charitable causes and heirs through tax advantages and controlled distributions. For business owners, qualified terminable interest property trusts and generation-skipping trusts offer additional options for complex estate planning needs while minimizing tax implications.
Can I make changes to my trust after it has been created?
For revocable living trusts, you maintain full ability to modify, amend or revoke the trust during your lifetime. Changes might include adding or removing beneficiaries, adjusting distribution terms, or updating successor trustees. Irrevocable trusts, however, generally cannot be changed after creation except under specific circumstances allowed by California law, such as court approval or unanimous consent of all beneficiaries.
Will my beneficiaries have to pay taxes on the assets they receive from the trust?
Trust distributions may have tax implications depending on the type of trust and assets involved. While assets distributed through a revocable living trust typically do not trigger immediate income tax for beneficiaries, they may face capital gains tax when selling inherited property. Additionally, very large estates may incur estate tax, though current federal exemptions shelter most families from this burden. Professional guidance helps structure trusts to minimize tax impact.
How often should I review my trust and make updates?
Major life changes warrant trust review – marriage, divorce, births, deaths, significant asset changes or moves to different states. Even without major changes, reviewing your trust every 3-5 years helps verify it still accomplishes your goals and complies with current laws. Regular reviews allow updates for changed circumstances or new planning opportunities under California trust law.
Avoid Probate, Contact My Law Office
Contact me online or call 714-515-5126 to schedule your free initial consultation with an experienced Orange County estate planning lawyer and learn more about the trust options available to you.