Trusts
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- 5-star client reviews and a trusted reputation across Orange County
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Creating a trust allows you to protect your assets, avoid probate, and provide for your loved ones according to your wishes. The trust attorneys at OC Wills & Trust Attorneys in Orange County help individuals and families establish and manage trusts that safeguard their legacies while reducing taxes and court involvement.
What Is a Trust?
A trust is a legal arrangement that allows one person (the trustee) to hold and manage assets on behalf of another (the beneficiary). Trusts help control how assets are distributed during your life and after your death while avoiding the costs and delays of probate court.
In short, a trust helps you:
- Keep your estate private and out of probate
- Control when and how beneficiaries receive assets
- Protect your estate from unnecessary taxes and legal challenges
- Simplify estate management and reduce family stress
Why Create a Trust?
Trusts are a cornerstone of estate planning in California because they allow assets to transfer smoothly without court interference. Whether you have a modest estate or significant property holdings, a trust offers efficiency, flexibility, and peace of mind.
Key advantages of setting up a trust include:
- Immediate transfer of property to heirs upon death
- Protection from probate fees and court oversight
- Greater privacy for your financial affairs
- Continued management if you become incapacitated
- Potential estate tax reduction
Types of Trusts Available in California
Choosing the right trust depends on your goals, assets, and family circumstances. At OC Wills & Trust Attorneys, we explain each option clearly and help you select the best structure for your needs.
Revocable Living Trust
A revocable living trust allows you to maintain full control of your assets during your lifetime. You can change or dissolve it at any time, and it becomes irrevocable upon your passing.
Benefits of a Revocable Living Trust:
- Avoids probate delays and expenses
- Provides flexibility to amend or revoke
- Protects your privacy and keeps estate details confidential
- Allows for smooth management during incapacity
Irrevocable Trust
An irrevocable trust cannot be changed after it is created, but it offers powerful tax and asset protection advantages.
Common reasons to create an irrevocable trust:
- Reduce estate and income tax exposure
- Protect assets from creditors or lawsuits
- Provide for long-term care or charitable giving
Special Needs Trust
This trust allows you to provide financial support to a loved one with disabilities without affecting their eligibility for government benefits.
Benefits:
- Preserves access to SSI or Medi-Cal
- Ensures funds are used for care and quality of life
- Protects long-term support for vulnerable beneficiaries
Testamentary Trust
A testamentary trust is created through your will and becomes active after your death. It’s often used to provide structured support for minor children or beneficiaries who need oversight.
Trust Administration in Orange County
Once a trust is established, it must be properly managed according to California law. This process is called trust administration and involves overseeing assets, paying debts, and distributing property.
Trust administration tasks include:
- Locating and valuing trust assets
- Notifying beneficiaries
- Paying valid debts and expenses
- Managing investments and tax obligations
- Distributing assets in accordance with trust terms
A trust attorney ensures compliance with legal requirements, helping trustees avoid mistakes that could lead to disputes or penalties.
Trusts vs. Wills: What’s the Difference?
Both documents are essential to a complete estate plan, but they serve different purposes.
| Feature | Trust | Will |
|---|---|---|
| Avoids Probate | Yes | No |
| Effective During Lifetime | Yes | No |
| Privacy | Confidential | Public Record |
| Controls Asset Distribution | Yes | Yes |
| Can Name Guardians for Minors | No | Yes |
Best practice: Combine a will and trust for comprehensive protection and flexibility.
How to Set Up a Trust in California
The process of creating a trust requires careful drafting and execution to ensure it’s legally valid and aligned with your goals.
The 5 Steps to Establishing a Trust
- Define Your Goals: Identify what you wish to achieve and who your beneficiaries will be.
- Choose a Trustee: Appoint a reliable person or institution to manage assets.
- Select the Right Trust Type: Determine whether a revocable, irrevocable, or special needs trust fits your needs.
- Transfer Assets Into the Trust: Retitle property, bank accounts, and investments under the trust’s name.
- Review and Update Regularly: Revisit your trust as life circumstances change.
Contact Our Orange County Trusts Attorneys
Whether you are establishing a new trust or need guidance on managing an existing one, OC Wills & Trust Attorneys is here to help. Our Orange County trust attorneys provide clear, compassionate guidance to ensure your assets and loved ones are protected. Schedule your free consultation today to begin planning your future with confidence.
FAQs
Do I still need a will if I have a trust?
Yes. A “pour-over will” ensures any assets not included in your trust are still distributed according to your wishes.
Can I change my trust after it’s created?
If it’s a revocable living trust, you can make changes at any time while you’re alive and competent. Irrevocable trusts generally cannot be changed.
Does a trust help reduce estate taxes?
Certain trusts, such as irrevocable or charitable trusts, can minimize estate taxes and protect more of your wealth for your heirs.
