What is a trust?
A trust is a legal relationship in which a person or organization (known as the trustor or grantor) transfers assets to a trustee, who holds and manages those assets for the benefit of other people (known as the beneficiaries). In California, Disability Planning Law allows the trustor to transfer assets to a trust for the benefit of a disabled individual, with the aim of protecting the disabled individual’s access to public aid. The trustor’s assets are held in trust for the benefit of the disabled individual, and managed for their best interests. A trustee is responsible for making decisions about how these assets are managed (such as how and when distributions are made) and protecting the assets from misuse. The trustor can appoint a trustee (or trustees) to manage the trust, or they can choose to have a professional trustee or institution act as the trustee of the trust. The trustor can also set up rules and conditions that the trustee must follow in order to ensure the disabled individual receives the assets in a timely and appropriate manner. The trustor can also choose to designate a guardian or a guardian ad litem (a person appointed by the court to protect the disabled individual’s interests) to oversee the trust and the trustee’s activities. Finally, the trustor may also choose to designate a beneficiary representative to work with the trustee and make sure the disabled individual’s interests are taken into account.
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