Trusts

A trust is a powerful estate planning tool that offers many benefits, including the ability to have control over the distribution of your assets and property while you are still living. An Orange County trust lawyer can help you work through the intricacies of creating a trust. They can work closely with you to understand your goals and make sure your trust document effectively achieves the outcome you desire.

The Law Office of Patricia Hendrickson is a client-focused estate planning firm that serves the Orange County area. Led by Patricia Hendrickson, an attorney with over two decades of experience, our firm is dedicated to assisting families and individuals with creating a trust that safeguards their legacy.

Trust Laws in Orange County

Any trust you create must meet specific requirements to ensure it is effective and can be enforced. These key elements are generally needed for a trust document to be legally valid:

• Intent to Create a Trust: As the trustor, you must have the intention to create a trust, and that intent must be clearly stated in the trust document itself.
• Presence of Trust Property: There must be property or assets that have been transferred into your trust, and that property must currently exist. This can include personal property, real estate, financial accounts, and other valuable assets that can be identified.
• Recipients: For most types of trusts, you must have at least one recipient of the trust property.
• Legal Purpose: There must be a purpose for the creation of the trust, but it cannot be created for any reason that is illegal or goes against public policy.
• Written Documentation: The trust must be a written agreement that outlines the instructions, terms, and conditions for the management and distribution of the trust property. An oral trust agreement may only be recognized if there is compelling evidence that proves the existence of the agreement and its terms.
• Signing and Notarization: The trust agreement must be signed by the trustor and, in some situations, the trustee. It is ideal to do the signing in front of a notary and have the document notarized. Although notarization is not always a requirement, it can strengthen the validity of the trust document.

Types of Trusts

You can create multiple types of trusts. We can help you determine which work for your circumstances, and we can make sure you understand the benefits and drawbacks of each.

Living Trust

A living trust is a legal arrangement between a trustor and a trustee. In the arrangement, the trustor transfers the assets they own to a trustee, who will then manage and distribute those assets as laid out in the trust document. It is possible to be both the trustor and a beneficiary of a living trust or the trustor and trustee. However, in the case of the latter, it may be necessary to name a successor trustee in the event that you die or become incapacitated.

A living trust goes into effect as soon as it is established, allowing you to transfer assets into the trust during your lifetime. Trust property can be distributed to whomever you name at any point during your life or after your death as long as it is specified in the trust.

Revocable and Irrevocable Trusts

A trust can be revocable or irrevocable. A revocable trust can be modified or revoked at the discretion of the trustor during their life, but it becomes irrevocable once the trustor dies. This means that as the trustor, you can transfer property into and out of the trust as you see fit. It’s not uncommon for the creator of a revocable trust to also be the trustee and a beneficiary, but in this case, it’s important to work with an estate planning lawyer to reduce potential conflicts.

An irrevocable trust cannot be modified once it is established. Any property or assets you transfer into an irrevocable trust cannot be removed. For an irrevocable trust, you cannot be the trustor and trustee, and you must choose someone else to be the trustee.

Special Needs Trust

Special needs trusts are a way for individuals to give their loved ones with disabilities financial support without making them ineligible for government assistance programs like Supplemental Security Income (SSI) and Medi-Cal.

A special needs trust can be first-party or third-party funded, meaning it can be funded by the beneficiary’s assets or by another person. However, first-party SNTs may require repayment to the state once the trust is terminated or after the death of the beneficiary.

Pet Trust

A pet trust is similar to other types of trust instruments, such as a living trust. It allows a pet owner, the trustor, to leave funds and specific instructions for the care of their pet if they die or become incapacitated.

With a pet trust, you can name the person you’d like to care for your pet and assign a trustee. They can make sure that the funds are managed properly and that your wishes are honored for the pet’s entire life. A pet trust is a legally recognized arrangement in California, and it can be enforced by the court.

Testamentary Trust

A testamentary trust is created only after death as a part of the trustor’s last will and testament. The trustor must detail in their will how they want their assets managed and distributed by a trustee. As soon as the trustor passes away, the testamentary trust is established.

Abstract of Trust

An abstract of trust is a more succinct version of a trust agreement that gives a description of key information in the document, such as agreement provisions and terms and conditions. It allows you to omit certain confidential or sensitive details. The main purpose of an abstract of trust is to show proof of a valid trust while keeping its contents private. An attorney can inform you of how to create an abstract of trust and what information you should include.

Contact the Law Office of Patricia Hendrickson

An Orange County trust lawyer is an invaluable resource for creating an estate plan. At the Law Office of Patricia Hendrickson, our experienced attorney has vast knowledge of California trust laws and is committed to understanding your needs and wants. Contact our team to go through the estate planning process with full confidence.