If you want to ensure appropriate management of your property and have some level of control over asset distribution, you may set up a trust in California. This is another way for you to legally turn over these assets to a person or group of people by using a trustee to handle this responsibility. A trustee has a fiduciary duty to handle property and assets carefully and safely, acting only for the benefit of your chosen beneficiaries.Â
Trust documents must be signed and comply with state law. Many people put a variety of tangible items into trusts such as cars, houses, cash, and investment portfolios. When the creator of the trust becomes incapacitated or dies, any revocable trust becomes irrevocable, and the terms of that trust must then be carried out by the successor trustee exactly as written. If this is an irrevocable trust to start with, once it has been signed, it cannot be changed.
There are several ways that trust assets could be distributed to beneficiaries. A trustee could give a beneficiary cash, write a check, or can transfer real estate by selling the house and either transferring the deed or giving the beneficiary the proceeds. In any of these situations, it’s important for a trustee to document what they have done. This will help minimize possible allegations of improper trust management in the future.Â
Our law firm can help you figure out what parts of an estate plan work best for you. For further questions about setting up a trust, contact our experienced attorneys today. We help individuals, families, and business owners in Pasadena craft comprehensive estate plans to address their unique needs.
