If you’re looking to create a trust in California, Alice A. Salvo can help. A Certified Specialist in trusts, estate planning, and probate law, Ms. Salvo knows how to devise estate plans for any goal. She has over 25 years’ experience handling trusts and estates in California – and she wants to work with you today. For a free initial consultation with our Los Angeles trust attorneys, contact us now.
What Is a Trust?
A trust is a type of legal relationship. There are always at least three parties involved: a settlor, a trustee, and a beneficiary.
The settlor is the person who forms the trust and decides which assets to place into it. The trustee manages the assets on behalf of a beneficiary. The trustee must always act in the best interests of the beneficiary and look after the assets held in trust.
- There may be a group of trustees who work together on the beneficiary’s behalf.
- You can have more than one beneficiary for a trust. This is common.
- A trustee is normally a close family member or friend but they can also be an attorney.
- Trustees can seek legal and financial advice if they need help performing their duties.
- It’s possible for a trustee to also be a beneficiary. However, they can’t favor themselves when managing the trust – they must act impartially.
There are two major types of living trusts: revocable and irrevocable living trusts. Revocable trusts can be changed easily at any point whereas irrevocable trusts are much harder to alter. Legal advice should be sought before deciding which type of trust to create.
How Are Trusts Formed?
There are various steps to trust creation in California.
- The settlor decides which assets to place in the trust.
- The settlor names at least one trustee. If they appoint themselves as a trustee, they should appoint a successor in the event of their death.
- Beneficiaries should be named. These individuals, or organizations, will receive the assets.
- A formal trust document should be drawn up and signed to ensure the trust is valid. A Los Angeles living trust attorney can assist with this.
Contact our trust lawyer in Los Angeles today to discuss forming a trust.
Why You Need a Trust Attorney in Los Angeles
Without a trust, you risk your assets, such as money and real estate, being distributed against your wishes. This is because California estate law will decide what happens to your assets in the absence of a trust or will. A trust attorney in LA will ensure you create a trust which aligns with your wishes.
- Appointing a trust attorney helps you avoid many common pitfalls associated with trust creation and management.
- If you’re separated but not divorced, your spouse may get your assets upon your death. Hiring an attorney to help you create a trust prevents this from happening.
- If you have real estate or an estate worth over $150,000, your estate must go through probate. You can avoid this by hiring a LA trust lawyer and placing your assets into a trust. Assets held in trust do not pass probate.
- Without a trust, your spouse may lose out on inheriting assets. The assets may be split in a way you do not want between your spouse and children. A trust lawyer in LA can explain your options so you create a trust which reflects your wishes.
