How to Create a Trust in California

A trust is a legal tool, or mechanism, for managing your property while you are still alive, and after your passing. It is a key legal document in any well-rounded estate plan.

But how do you create a valid trust? This is a question we commonly encounter. So, below, our attorneys explain the main steps in creating a valid trust in CA.

Steps to Setting Up a Valid Trust in CA

Under California law, a trust is only valid if:

• The creator intends to set up a trust;
• There is property to put inside the trust; and
• The trust has a beneficiary (unless it’s a charitable trust).

Should any of these criteria not be met, then there is no trust created. How do you ensure that you create a valid trust? Your first step should be contacting our lawyers for help – trusts are complicated! But in the meantime, here are the main steps to creating a trust in California.

1. Choose the Type of Trust

There are various types of trusts, including revocable trusts and irrevocable trusts. The most common trusts are revocable living trusts, which you create during life. They can be changed at any point before death.

However, the type of trust you choose depends on your financial goals. Your estate planning attorney can help you decide which trust will benefit you most.

2. List Your Assets

Next, create an inventory of your assets. This list should include all assets you own, including:

• Company interests
• Bank accounts
• Investments
• Real estate
• Personal property e.g. vehicles
• Life Insurance

This helps you value the size of your estate. It also helps you decide which assets to put into the trust.

3. Appoint a Trustee(s)

A trustee is responsible for managing the trust and looking after the assets. They must act according to your wishes and always in the beneficiaries’ best interests.

Most people choose a trusted family member, professional or attorney as a trustee. However, they can be anyone, and you can have more than one.

4. Choose a Beneficiary

Next, choose who should benefit from, or receive, the trust assets. Again, the beneficiaries can be anyone, but they are often family members or friends. They can, however, also be organizations and charities, depending on the type of trust you create.

Do you want to set up a living trust in California? You can change your beneficiary or add new beneficiaries at any time before you die.

5. Draft the Trust Document

The next step is drafting the trust document. There are no templates to handle every situation, so it is best to consult an estate planning attorney for this step. They will ensure that the trust document is clear and reflects your wishes. This means there is less chance of anyone challenging the trust’s validity upon your death.

6. Have the Trust Document Signed and Notarized

You must sign the trust for it to be valid. Although you do not need to have a trust notarized in California, it does add a layer of protection. Trusts are less likely to be challenged down the line if they are witnessed and notarized.

Our law firm can help with this vital step in the creation process.

7. Fund the Trust

Finally, you move the desired assets into the trust. This usually involves changing the title on deeds such as deeds for real estate. It is also the mechanism for how you move assets such as bank accounts and business interests into the trust.

Trust creation is not complete until the trust is funded.

Leading Estate Planning Attorneys in California

Creating a trust is a legally complex process. To ensure that your trust is valid and achieves your wishes, contact the Law Offices of Alice A. Salvo.

Our experienced estate planning attorneys will help you understand your options so you can choose the right trust for your needs. They will give you peace of mind, knowing that your family is well provided for. So, whether you need help creating a living trust in California, or general estate planning advice, contact us.

Call or leave a message online at your convenience.