WAEstate

Sacramento Estate Planning Attorney

Call Now: (916) 437-3500

Getting Started
  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • YouTube
  • Home
  • Our Firm
    • About Our Firm
    • Meet Our Team
  • Estate Planning
    • Estate and Gift Tax Figures
    • Estate Planning
    • IRA & Retirement Planning
    • LGBTQ Community
    • Legacy Planning
    • Medi-Cal
    • Pet Planning
    • Special Needs Planning
    • Trust Administration and Probate
    • Veteran’s Benefits
  • Elder Law
    • Alzheimer’s Disease
    • Caregiver Information
    • Hospice Care
    • Medi-Cal Planning
    • Nursing Home Planning
  • Communities We Serve
  • Seminars
  • Reviews
    • Our Reviews
    • Review Us
  • Resources
    • Articles
    • Definitions
    • Estate Planning Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
      • Trust Administration
    • Estate Planning Techniques
    • Elder Law Reports
    • FREE Estate Planning Worksheet
    • Frequently Asked Questions
      • Business Succession Planning
      • Elder Law
      • Estate Planning
      • Estate Planning
      • LGBTQ Estate Planning
      • Elder Law Issues
      • Frequently Asked Questions for Families Without an Estate Plan
      • Medi-Cal
      • Medi-Cal Planning
      • Trust Administration & Probate
    • Free Seminars
    • Is Your Estate Plan Outdated?
    • Presentations
    • Probate Resources
      • Colfax Probate
    • Veterans Resources
  • BLOG
  • Contact Us

A Basic Guide to Trusts

January 5, 2019 by Timothy P. Murphy Leave a Comment

If you’re thinking about your estate planning affairs, you may be considering the use of trusts.  It’s important to understand how trusts work, so that you can make the best planning decisions; take a look at the following basic information to learn more.  If you have any questions, or if you’d like to discuss how trusts can fit in with your estate plan, meet with an experienced, qualified estate planning attorney.

Trustee Holds Legal Title to Trust Assets

When you create a trust, you’re giving a trustee control over your trust’s assets.  In fact, the trustee holds legal title to the assets; this means the trustee owns the assets for the benefit of the beneficiaries.

Having the opportunity to appoint a trustee (and successor trustees) makes it possible for you to leave behind assets to your beneficiaries, while ensuring assets are properly managed, distributed, and used per your instructions.

You Create the Trust

As a trustor (i.e. “grantor,” “settlor”, “trust maker,”) you’re the individual who creates your trust, which is a legal agreement (i.e. contract.) and typically re-title your assets into the name of the trust.  Husbands and wives can be co-trustees.

You will need to appoint someone to manage the trust.  This person is called the trustee.  For many trusts, including the popular living trust, you can appoint yourself and your spouse as the trustees of your trust. If so, then you will still need to name a successor trustee.  It’s important to choose someone who is responsible, reliable, a good record keeper and a good communicator, so that your affairs are in good hands.  In other words, you must trust this person.

You will also name beneficiaries.  In the typical living trust, you will be the beneficiary during your lifetime.  However, you will also decide how your trust’s assets will be distributed after your death.  Your  remainder or death beneficiaries are the individuals and charities who will receive your assets.

There are Many Types of Trusts; With Their Own Set of Benefits and Purposes. 

If you want to remain in control of your assets and your trust, making changes to your trust throughout your lifetime, consider creating a revocable living trust. This is a trust that gives you complete control throughout your lifetime, so long as you have legal capacity.

If you need to get assets out of your estate for federal tax or asset protection purposes, you must give up control over them; and, an irrevocable trust may be appropriate.  Except for exceptional circumstances, these trusts can’t be changed.  Examples of irrevocable trusts would be life insurance trust  and charitable trusts.

If you have any questions about the use of trusts, consult with an experienced and qualified estate planning attorney.

  • Author
  • Recent Posts
Timothy P. Murphy

Timothy P. Murphy

Timothy P. Murphy is an estate planning and elder law attorney whose practice emphasizes helping people to build, preserve and pass on their wealth. He works with his clients to accomplish their goals while avoiding unnecessary court proceedings and minimizing or eliminating exposure to death taxes.
Timothy P. Murphy

Latest posts by Timothy P. Murphy (see all)

  • The Keys to a Successful Estate Plan - December 13, 2019
  • Important Estate Planning Tools for the LGBTQ Community - December 11, 2019
  • Don’t Accidently Disinherit Your Children - December 9, 2019

Filed Under: Revocable Living Trust, Trustees, Trusts Tagged With: Irrevocable Trusts, Living Trusts, Revocable Living Trust

Other Articles You May Find Useful

Northern California Center for Estate Planning and Elder Law
Important Estate Planning Tools for the LGBTQ Community
Northern California Center for Estate Planning and Elder Law
How to Choose A Trustee
Northern California Center for Estate Planning and Elder Law
Handy Estate Planning Tips for You and Your Family
Northern California Center for Estate Planning and Elder Law
How Not to Unintentionally Disinherit Your Children
Northern California Center for Estate Planning and Elder Law
Why a Will Isn’t the Only Document You Need (part 2 of 2)
Northern California Center for Estate Planning and Elder Law
Caution: Not All Living Trusts Will Avoid Probate

Leave a Reply Cancel reply

You must be logged in to post a comment.

Download our free estate planning Worksheet

Plan For Your Future and Protect Your Legacy Download our Estate Planning Worksheet to get started!
  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

Blog Subscription

  • This field is for validation purposes and should be left unchanged.

Upcoming Seminars

    Previous Seminar Topics:

    • 8 Deadly Mistakes: How Clients Destroy Their Estate Plans and What You Can Do About It (June 2019)
    • Beneficiary Planning: Tailoring Your Estate Plan To Meet Your Goals And Their Needs (March 2019)
    • Long Term Care Planning In A Changing World (February 2019) (March 2018) (January 2016) (July 2016)
    • The Trustee Workshop: Keeping Things In Good Order Now and In the Future (January 2019) (February 2018)
    • The New Tax Law: What It Means For You (January 2018)
    • Effective Estate Planning Strategies: What You Need to Know” (Dante Club, May 2018)
    • “Taking Care of Business: Planning Guide and Resources for Older Adults” (Carmichael Presbyterian Church, May 2017)
    • “The Care and Feeding of Your Living Trust: Keeping It Up To Date” (January 2016) (September 2017)
    • “Protecting Your Retirement Accounts from Excess Taxes, Penalties and Problems Now and in the Future” (January 2016) (January 2017)
    • New President, New Tax Laws? (January 2017)
    • The Trustee Workshop: How to Make Sure Your Trust Works When You Need It (August 2016)
    • Estate Planning Workshop (March 2016)
    There are no seminars scheduled at this time. Please leave your name and email and we will let you know when our next one is scheduled.
    • This field is for validation purposes and should be left unchanged.

SACRAMENTO

2277 Fair Oaks Blvd., Ste 320
Sacramento, CA 95825-5599
United States (US)
Phone: (916) 437-3500

ROSEVILLE

3017 Douglas Blvd., Ste 300
Roseville, CA 95661
United States (US)
Phone: (916) 437-3500

MAP

norcalplanners_sidbr_map

Office Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 12:00 PM
footer-logo
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

The information on this Attorneys & Lawyers / Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

Northern California Estate Planning Firm. Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2019 American Academy of Estate Planning Attorneys, Inc.