Wanting to provide for your loved ones and your children after you pass away is a very common estate planning goal. Doing so not only gives you the peace of mind that you have provided for them, but can also arrange for these assets to transfer smoothly at the time of your passing.
There are many different kinds of trusts available for you to use in California, and which one you select depends on your individual goals and what you hope to achieve with the trust.
When thinking about a trust fund for your child, it is common to be concerned about losing control after a child is legally an adult, losing assets to taxes, exposing assets to ex-spouses and creditors, or the costs and delays of probate. Establishing an estate planning trust while you’re still living gives you maximum control and flexibility and allows you to determine the terms on which those assets are distributed, rather than putting that in the power of the courts.
A trust lawyer can help you select the appropriate trust, create customized terms, verify that it aligns with California laws, modify your trust flexibly over time (if it’s a revocable trust), or even handle administration. One of the most important decisions starts at the beginning, which is choosing the right type of trust: revocable or irrevocable. Common choices within each of these categories also includes discretionary trust, incentive trusts, or support trusts.
With so much to consider in the estate planning process, it is common to speak with an estate planning attorney before establishing your trust. It is equally important to put some time into thinking who you want to name as your trustee. This trustee could be someone who steps in after you pass away for them to handle administration of the assets, or it could be someone who immediately assumes control of trustee responsibility.
