When creating a trust for estate planning purposes, it’s wise to work directly with a knowledgeable estate planning attorney. An estate planning attorney in California can tell you more about the different kinds of trusts and their pros and cons.
The person responsible for creating the trust is known as a settlor, trustor, or grantor. The terms selected by this person will guide how the trust is drafted and used. Understanding the grantor’s role will assist you in choosing the right type of trust and in designating the person who will act as your successor in specific types of trusts.
In the future, any successor trustee must still follow applicable laws and the terms established by the original grantor. Depending on the terms set up, the trustee may still have some discretion over asset distribution and should be someone comfortable communicating with beneficiaries and handling any reporting.
The fundamental role of a grantor is to first establish the trust and then transfer assets from their personal possession into the trust. In some cases, they may also manage that trust if they so choose.
Trusts can help efficiently transfer assets and manage and protect those assets until it is time to distribute those assets to selected beneficiaries. Since there are many kinds of trusts out there and each has rules about how they can be structured, working with a lawyer is strongly recommended for help with compliance with applicable laws and to confirm that your trust accomplishes the goals you set out to achieve.
The kind of trust you need will depend on the personal circumstances of the grantor (you). Personal circumstances may be: privacy considerations, specific legal or financial objectives, and choices on how much direct control you want. If you are curious about establishing a trust in California and have further questions, contact our Pasadena estate planning attorneys today to set up a meeting to discuss.
